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VMC requires Rs. 556 cr. for JNNURM works

Tuesday, 30 June 2009 05:07 administrator
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Source : The Hindu Date : 30.06.2009

VMC requires Rs. 556 cr. for JNNURM works

G.V.R. Subba Rao

The corporation’s share varies from one project to the other

 

Projects worth Rs. 1,418.65 crores sanctioned for the city

Its share for BRTS crosses half-way mark

VIJAYAWADA: It is now more than clear that the Vijayawada Municipal Corporation (VMC)’s share in the projects taken up under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in the city is likely to reach Rs.556 crores. Projects of a total value of Rs.1418.65 crores have been sanctioned for the city under the JNNURM.

The VMC’s share varies from one project to the other. For instance, the corporation would have to pool in at least 37 per cent of the total cost of the projects taken up under the Basic Services for Urban Poor (BSUP), a sub-mission under the JNNURM and 44 per cent of the cost of all projects taken up under the Urban Infrastructure and Governance (UIG), the other sub-mission. The share crosses half-way mark for the prestigious Bus Rapid Transit System (BRTS) project, for which it would have to bear 58 per cent. Officials estimate that these percentages translate into a burden of Rs. 556 crores for the VMC.

The Central government has so far sanctioned projects worth Rs. 645.57 crores under the BSUP, including housing for the poor, while Rs. 75.33 crores has been sanctioned for the UIG projects. The BRTS project costs Rs. 152.64 crores.

Cost escalation

The corporation is forced to shoulder the escalation cost in the housing project though it has been initiated by the State government. The VMC is hoping that the State government will release the escalation cost. The ruling Congress too claims that the State government would release the funds. Officials say if the State government shares the burden of cost escalation of housing projects, the corporation’s share could come down to Rs. 277 crores.

The State government, as reported earlier, has taken shelter under the official jargon and decided to treat a major portion of its share as loan, as a result of which the corporation’s share in JNNURM projects will go up to 48 per cent, instead of 30 per cent as mentioned in the guidelines issued by the Centre.

The JNNURM guidelines mandate the State government to provide 20 per cent of the cost of a project proposed by a local body as its share. However, as the guidelines have used the term ‘loan-cum-grant’, the government is gearing up to divide its 20 per cent share into two parts -- 18 per cent as loan and the remaining 2 per cent as a grant.

Last Updated on Tuesday, 30 June 2009 05:37
 

A.P. gram panchayats to be upgraded to municipalities

Sunday, 28 June 2009 11:51 administrator
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Source : The Hindu Date : 28.06.2009

A.P. gram panchayats to be upgraded to municipalities

Special Correspondent

HYDERABAD: The Municipal Administration and Urban Department in Andhra Pradesh have been asked to identify gram panchayats with a population of 40,000 for upgradation to municipalities.

The suggestion came from Chief Minister Y. S. Rajasekhara Reddy at the Collector’s conference on Saturday during a discussion on Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Urban Infrastructure Development Scheme for Small and Medium Towns . Officials brought to his notice that funds to the tune of crores of rupees granted to the State under the JNNURM were not being utilised completely.

Last Updated on Sunday, 28 June 2009 11:58
 

Rs.203 crore for underground drainage system in Puducherry

Saturday, 27 June 2009 07:05 administrator
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Source : The Hindu Date : 27.06.2009

Rs.203 crore for underground drainage system in Puducherry

Staff Reporter

Tender will soon be floated to invite bids to award works

Photo: T. Singaravelou

Spot study: Chief Minister V. Vaithilingam and his Cabinet colleagues inspecting a special drive to clean sewage canals in Puducherry on Friday. —

PUDUCHERRY: The Union government has sanctioned Rs.203 crore to convert the open drainage into an underground system under the Jawaharlal Nehru National Urban Renewal Mission in the Union Territory, Chief Minister V. Vaithilingam said here on Friday.

Interacting with reporters after inspecting the work of cleaning sewage canals, he said tenders would soon be floated for the works. Of the total amount, Rs.40 crore had already been released, he said.

The Public Works Department had been entrusted with the task of cleaning all major drainage canals within three months, he said. “This is only the first phase of the cleaning programme. During the period solid waste deposited in the canals will be removed in order to allow smooth flow of drainage,” he said.

In the second phase, all the canals will be de-silted and then re-designed, he added.

Officials in the Public Works Department told The Hindu that all the floating objects and sand accumulated on the banks of the canal would be removed in three months. The expenditure involved for cleaning works out to around Rs.17 lakh.

The Department had sought Rs.32.5 lakh to de-silt and clean small canals on the outskirts of urban limits. An amount of Rs.80 lakh had been sought to de-silt the river courses and channels in the rural areas, the official said.

Others who were part of the inspection team included Public Works Department Minister M.O.H.F. Shahjahan, Public Health Minister A. Namasivayam , Chief Secretary to the Government of Puducherry R. Chandramohan and senior officials from the administration.

Last Updated on Saturday, 27 June 2009 07:11
 
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