Indian Express 5.11.2009
Delay in funds hits development projects
Pimpri-Chinchwad awaits crucial schemes under Jawaharlal Nehru National Urban Renewal Mission
Faced with a funds crunch and little help coming forth from the state government, the Pimpri-Chinchwad Municipal Corporation(PCMC) is finding it difficult to implement crucial development projects under the Jawaharlal Nehru National Urban Renewal Mission(JNNURM). If officials are to be believed, the civic body has run out of funds to carry on with development projects like sewerage, river improvement and solid waste management.
"Whatever funds we had have been paid to the contractors. Now we if don't pay the contractors, the key development projects will come to a standstill," said Neelkanth Poman, the civic officer who is looking after the JNNURM projects. Poman said the problem would be solved to a great extent if the state government releases the JNNURM funds passed on to it by the central government. "The funds that the central government sanctions to civic bodies are routed through the state government. Our funds have been passed on to the state government by the central government. For six months, we have been waiting for the state government to release the funds," he said.
Officials said the state government has been sitting on as much as Rs 164 crore which includes both state as well as central government funds. Municipal Commissioner Asheesh Sharma said in the event these funds are not available to the PCMC as early as possible, the development projects would be affected.
"Due to the model code of conduct, the release of funds has been hampered. We have been in contact with the state government, and are now hopeful of early release of funds as the elections are over," he said.
Poman said for the Pavana river front improvement the PCMC is supposed to get Rs 62 crore, for sewerage Rs 22 crore, for solid waste management Rs 12 crore, for slum rehabilitation Rs 21 crore and for economically weaker section projects Rs 32 crore.
The PCMC has already suffered a setback on the financial front as its octroi revenue compared to last fiscal has dipped considerably this time. Octroi is the main source of revenue for the civic body. Sharma said PCMC is the first civic body in the state to get maximum funds under the JNNURM. "We have received a sanction of Rs 2,601 crore from the central government and this is the highest amount sanctioned to any civic body in the state," he claimed. Of the sanctioned amount of Rs 2601 crore, the central government has released Rs 846 crore and the PCMC has so far received Rs 682 crore. The next two years, said Sharma, are "very crucial" for the civic body as the JNNURM projects pick up momentum.
Poman said while the availability of funds are pegging PCMC on the backfoot, land acquisition has also adversely affected the civic body's plans. "The acquisition of land for the sewage treatment plant at Sangvi ran into a controversy. It took quite a while to bring warring parties agree to part with the land for the development project," he said.
