Speaking from Bengaluru, where he is undergoing naturopathy treatment, Kejriwal alleged that BJP was instigating the striking employees and trying to prepare grounds for imposition of central rule in the national capital.
Besides announcing a loan of Rs 551 crore, Kejriwal said Delhi Government is also releasing Rs 142 crore to the North Delhi Municipal Corporation as sought by it by way of stamp duty last week. Out of the loan, North MCD will get Rs 314 crore and East civic body Rs 237 crore.
Amid the impasse, Delhi Lt Governor Najeeb Jung met Union Home Minister Rajnath Singh and is learnt to have briefed him on the strike.
Mayors of the two municipal corporations said they will take the assistance only as a grant and not in the form of a loan. The government had earlier decided to put a moratorium on repayment of Rs 6,000 crore to it by the civic bodies.
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"An impression is being created as if Delhi Government is responsible for the financial mess in the MCDs which have been ruled by BJP for the last 10 years. There are huge scams in MCDs. A situation is being created through the strike of the municipal workers to show that there is a crisis in Delhi.
"The Modi government has dictatorial tendencies. Someone told me they are trying to create a situation to impose President's Rule in Delhi the way they imposed it in Arunachal Pradesh," the Chief Minister said.
The Chief Minister said a joint front of 19 Unions of MCD Employees has called for dissolving the civic bodies and bringing them under Delhi Government.
Reacting to the offer of loan, Rajesh Mishra, president of United Front of Municipal Corporation Employees said, "We do not want any loan we want a permanent solution for timely payment of our salaries and other dues as well as unification of the three municipal corporations."
The striking workers blocked roads in several areas in the city, including the arterial NH 24 and Vikas Marg, in the peak morning hours triggering traffic chaos.