The Times of India 18.03.2013
NMC may lose crores for JNNURM delay
NAGPUR: It seems the Nagpur Municipal Corporation
(NMC) may pay heavily for delay in completing multi-crore projects
under the Central government's ambitious JNNURM. The Centre has warned
it would not sanction any more funds after March 31, 2014, and would
even take back the disbursed funds with interest if projects were not
completed by then.
Of total 19 projects, the civic body could complete only eight so far. Of the pending ones, it appears likely that four projects worth Rs817 crore (amount at approval stage) may not complete within set deadline. Centre had approved 19 projects for the city worth Rs1,581.22 crore from 2006 onwards. All projects were to be completed by March 31, 2013. The civic body is already facing an escalation of Rs400 crore because of delay. Now, the Centre's latest missive will further test project management skills of NMC.
The JNNURM's central sanctioning and monitoring committee (CSMC) met in New Delhi on February 26. The minutes of the meeting have been put on the website of JNNURM. Ministry of Urban Development (MoUD) Sudhir Krishna took stock of the projects. He made it clear March 31, 2014, remains the final deadline. "It will not be possible to release any JNNURM funds beyond March 31, 2013. States will have to fund any balance funds on their own. The states may also have to refund the released amount along with applicable rate of interest to Government of India (in case of non-completion)," he said.
Krishna stated that the focus should be on quality of work drawing lessons from projects approved under JNNURM phase-I. "Implementation of any project would be smooth if all important issues like availability of land, municipal reforms, service level benchmarks, and clearances were in place before release of first instalment for any new project," he said.
The four laggard projects are 24X7 water supply, sewage treatment plant at Bhandewadi, water supply scheme in NIT area and railway over bridge at Maskasath. Already, the NMC is finding difficult to bear the additional burden of cost escalation. It may be nearly impossible if approved funds are taken back. The Central government bears half the total project cost while the state 20% local body 30%.
The city may lose Rs214.97 crore in NIT water supply scheme too. NIT could issue work orders for Rs81.42 crore only out of total approved cost of Rs296.39 crore. A senior NMC official told TOI, NIT could not issue tenders due to issue of regularization of layouts in which the works were to be executed.
Major loss for the city may be with respect to 24X7 water supply scheme as NMC could complete only 26.34% work by January end. The status of Maskasath Rob is worst at just 10% while sewage treatment plant was 16% complete by January end. NMC official from JNNURM department said NMC was not the only civic body facing delay. "NMC is committed to complete the projects by December end. Any further comment may only be made after December end," he said.
NMC has no succour from state government too with chief minister Prithviraj Chavan making it clear recently that the Government would not pay for cost escalation as civic bodies were responsible for poor planning of projects.
WORRISOME FOR NMC
* NIT water supply scheme worth Rs296.39 crore approved on January 7, 2009
* Work orders of Rs81.42 crore issued till date, 55% work completed
* City set to lose Rs214.97 crore according to Centre's latest missive
* 24X7 water supply scheme is 27% complete, and cannot be finished within deadline
* Approved cost is Rs387.86 crore, but has escalated to over Rs566.09 crore
* 16% work completed on sewage treatment plant worth Rs195 crore
* Maskasath railway over bridge work order is worth Rs4.92 crore and 10% work completed
* NMC has incurred hefty loss by deciding not to purchase 60 of 300 approved Starbuses
Of total 19 projects, the civic body could complete only eight so far. Of the pending ones, it appears likely that four projects worth Rs817 crore (amount at approval stage) may not complete within set deadline. Centre had approved 19 projects for the city worth Rs1,581.22 crore from 2006 onwards. All projects were to be completed by March 31, 2013. The civic body is already facing an escalation of Rs400 crore because of delay. Now, the Centre's latest missive will further test project management skills of NMC.
The JNNURM's central sanctioning and monitoring committee (CSMC) met in New Delhi on February 26. The minutes of the meeting have been put on the website of JNNURM. Ministry of Urban Development (MoUD) Sudhir Krishna took stock of the projects. He made it clear March 31, 2014, remains the final deadline. "It will not be possible to release any JNNURM funds beyond March 31, 2013. States will have to fund any balance funds on their own. The states may also have to refund the released amount along with applicable rate of interest to Government of India (in case of non-completion)," he said.
Krishna stated that the focus should be on quality of work drawing lessons from projects approved under JNNURM phase-I. "Implementation of any project would be smooth if all important issues like availability of land, municipal reforms, service level benchmarks, and clearances were in place before release of first instalment for any new project," he said.
The four laggard projects are 24X7 water supply, sewage treatment plant at Bhandewadi, water supply scheme in NIT area and railway over bridge at Maskasath. Already, the NMC is finding difficult to bear the additional burden of cost escalation. It may be nearly impossible if approved funds are taken back. The Central government bears half the total project cost while the state 20% local body 30%.
The city may lose Rs214.97 crore in NIT water supply scheme too. NIT could issue work orders for Rs81.42 crore only out of total approved cost of Rs296.39 crore. A senior NMC official told TOI, NIT could not issue tenders due to issue of regularization of layouts in which the works were to be executed.
Major loss for the city may be with respect to 24X7 water supply scheme as NMC could complete only 26.34% work by January end. The status of Maskasath Rob is worst at just 10% while sewage treatment plant was 16% complete by January end. NMC official from JNNURM department said NMC was not the only civic body facing delay. "NMC is committed to complete the projects by December end. Any further comment may only be made after December end," he said.
NMC has no succour from state government too with chief minister Prithviraj Chavan making it clear recently that the Government would not pay for cost escalation as civic bodies were responsible for poor planning of projects.
WORRISOME FOR NMC
* NIT water supply scheme worth Rs296.39 crore approved on January 7, 2009
* Work orders of Rs81.42 crore issued till date, 55% work completed
* City set to lose Rs214.97 crore according to Centre's latest missive
* 24X7 water supply scheme is 27% complete, and cannot be finished within deadline
* Approved cost is Rs387.86 crore, but has escalated to over Rs566.09 crore
* 16% work completed on sewage treatment plant worth Rs195 crore
* Maskasath railway over bridge work order is worth Rs4.92 crore and 10% work completed
* NMC has incurred hefty loss by deciding not to purchase 60 of 300 approved Starbuses
