Chandigarh, May 22 -- In a major cost-cutting move triggered by a deepening fiscal crisis, the Chandigarh municipal corporation (MC) has decided not to renew the contracts of 332 outsourced multi-task workers employed at tubewells across the city-effectively terminating 50% of its existing tubewell staff.

The MC operates 130 tubewells and 34 boosters across Chandigarh. Until now, 664 multi-tasking workers were employed on contract to manage these facilities. However, following an internal assessment conducted by the engineering department, the MC concluded that only 332 workers are "required" for operations moving forward.

While the issue had been flagged by councillors during the General House meeting in April, MC officials had then as...