Hailakandi: The sanctioning of Rs 1.25 crore by Dispur has come as a huge relief for cash-strapped Lakhipur town in Cachar district of Barak Valley in Assam.

Lakhipur Town Committee chairperson Sangeeta Gurung said the committee's coffers are empty and they are struggling to meet their expenditure.

The committees have Rs 2.5 lakh due in electric bill and the Assam Power Distribution Company Ltd (APDCL) has threatened to disconnect supply if the amount is not paid soon, she said.

Lakhipur, the headquarters of Lakhipur subdivision, has a population of 18,000 and is divided into 10 wards.

Gurung had met urban development minister Pijush Hazarika during the latter's maiden visit to Barak Valley three days back and apprised him of the financial crunch. Gurung was accompanied by committee vice-chairman Mrinal Kanti Das and the ward commissioners.

"He immediately sanctioned Rs 1.25 crore and asked the civic authorities to prepare a detailed project report within 30 days for release of the funds. He expressed concern over the committee facing scarcity of funds. He said development of the town should not be hampered because of paucity of funds," Gurung said.

She said they also met chief minister Sarbananda Sonowal and submitted detailed project reports of Rs 6.13 crore. Sonowal assured them that funds would be sanctioned once the projects are approved.

The committee had passed a Rs 10-crore annual deficit budget in March, she said.

Gurung alleged they were struggling because the previous Congress-led town committee didn't keep a single paisa in the coffer.

The committee is planning innovative development of the town with modern technology and the plans will be revealed soon, Gurung said.

The committee's priority is cleanliness and installation of streetlights, she added.