NMC expresses its inability to provide Rs 900 crore instead of Rs 450 crore as Maharashtra Government revises sharing of cost criterion. Previously, the State Government was supposed to share 90 per cent of the total cost with the NMC and NIT sharing the 5-5 per cent. But now, it is revised to 80:10:10 per cent.
Nagpur News: The proposed Nagpur Metro Railway plan is likely to be derailed even before moving an inch ahead. The Maharashtra Government has revised the funding criterion for the ambitious project. Previously, the State Government was supposed to share 90 per cent of the total cost with the NMC and NIT sharing the 5-5 per cent. But now, the Maharashtra Government has revised its share to the 80 per cent and 10 per cent each by the NMC and NIT respectively. The Government has sent letters to the NMC and NIT in this regard.
The Standing Committee Chairman Avinash Thakre on Tuesday told media that the NMC is not in a position to spend Rs 450 crore on the Metro Railway project. The Committee has sent a proposal to the House of General Body Meeting, likely to be held within a few days, for seeking an interest-free loan from the Government itself for the project, Thakre said.
The Chairman gave enough hints of crossing many hurdles for running the Metro Railway. The NMC Administration, in accordance with the Government’s letter, had forwarded a proposal to the Standing Committee for sanctioning 10 per cent amount i.e. Rs 900 crore for the project. The Government’s letter on 10 per cent share of the NMC, already taking the severe beating following enforcement of LBT, has created a mountain of difficulties for the civic body. The Standing Committee Chairman has also confirmed the precarious financial condition of the NMC. He said, “NMc had sanctioned 5 per cent i.e. Rs 450 crore as its share of cost for the Metro Railway project. But now, the share has been made 10 per cent (Rs 900 crore). However, the NMC is not in a position to provide additional Rs 450 crore. If the State Government extends interest-free loan of Rs 450 crore then the civic body is ready to share 10 per cent amount for the project. Such proposal has been sent to the House,” Thakre said.
“The State Government is arranging the funds for the Nagpur Metro Rail project through Loan Bonds and if the Government takes additional Rs 450 crore, the NMC will return the loan in installments,” Thakre said. But at present, the Metro project appears to be in limbo.
“There is proposal for constructing Ajni flyover. The flyover will begin from TB Ward and will end at two places, one at Chunabhatti and other at Dhanwate National College. The Standing Committee has sanctioned Rs 1.36 crore today for preparing report on the Rs 300 crore Ajni flyover project. If the project is sanctioned under JNNURM, a grant is given for the amount for preparing project report. The State Government has been informed accordingly, Thakre said.
Rs 25 CRORE FOR DEVELOPMENT WORKS:
The Standing Committee today sanctioned Rs 25 crore for various road repair works. Similarly, Rs 50 lakh for protection walls of “Nallahs” and Rs 22 lakh for sewer lines have been sanctioned respectively. Earlier, the Committee sanctioned Rs 72 crore for development works for which the work orders have been issued, Thakre stated.