Indian Express 04.08.2010
Following Prideasia, fate of UT slum rehabilitation project hangs in balance
Express News Service Tags : UT slum rehabilitation project Posted: Wed Aug 04 2010, 01:55 hrs
Chandigarh: The ongoing slum rehabilitation project of the Chandigarh Administration has received another blow, with the government depositing Rs 210 crore, earned from Parsvnath Developers in lieu of the Prideasia IT Habitat project, into the Consolidated Fund of India.The move comes nearly four months after the special audit ordered by the Ministry of Home Affairs highlighted gross irregularities in the functioning of the Chandigarh Administration and observed that the money be immediately deposited into the account of Consolidated Fund of India.
With this, the slum rehabilitation project has slipped even further with UT now losing out on funds. The total cost of the ambitious scheme is estimated to be around Rs 1,200 crore. Of this, the Chandigarh Administration has already spent nearly Rs 360 crore from the money deposited by Parsvnath Developers Limited in lieu of the Prideasia project.
Another Rs 225 crore has been incurred on the project, which the Administration got under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme.
According to officials, two instalments amounting to Rs 200 crore are still awaited under JNNURM for completion of the project. The Administration will, however, still fall short of nearly Rs 415 crore to complete the project.
Secretary (Finance) Sanjay Kumar said, “Depositing Rs 210 crore in the Consolidated Fund of India is a kind of an account settlement, which the auditors wanted us to do. We have done that now. As far as getting money for completing the slum rehabilitation project is concerned, we are again going to raise a demand for funds with the Central government. As the Planning Commission has approved our demand of additional Rs 190 crore; we shall be requesting the Ministry of Home Affairs to also grant us some funds, so that the project can be completed.” The pace of the project has definitely been hit after Prideasia got stalled and with the money being deposited to the Consolidated Fund of India; but it is still on track. I think, we shall be able to pull it through,” Sanjay Kumar added.
The Chandigarh Administration was to earn nearly Rs 821 crore from the deal with Parsvnath Devleopers on the Prideasia IT Habitat project. However, ever since the project hit a wall, the government has been left craving for funds. At present, the Prideasia project is under arbitration. Though Chandigarh Administration had issued a notice of ‘termination of contract on the project’ and ‘forfeiture of the entire deposit’ to Parsvnath Developers; the arbitration tribunal has put a stay on the termination and forfeiture of deposit.
