The Union Urban Development Ministry and the Haryana Government have locked horns over the formation of the Special Purpose Vehicle (SPV) to monitor the operation of JNNURM buses in the State.
The Ministry has threatened to block the funds to the State if it did not set up the SPV at the earliest. The Haryana Government has said that there is no need to set up the SPV since operation of the buses was being efficiently done by the Government Transport Department. It also sought direct transfer of funds under the scheme to its transport department.
However, this has not impressed the Centre. Formation of the SPV is one of the major criteria for the release of funds under the Jawahar lal Nehru National Urban Renewal Mission, launched in 2005-06
In a meeting held recently to review the performance of the flagship scheme across the country here, Urban Development Secretary Sudhir Krishna specifically noted the Haryana Government’s failure in setting up the SPV despite its repeated reminders.
“Non creation of city specific SPV for bus services is not acceptable to the Ministry. If the State Government is not keen to form the SPV for CBS, funding will not be possible under the scheme,” Krishna made it clear to the Bhupinder Hooda Government.
The Ministry was also upset that in various meetings, the State Government had been promising to set up the SPV at the earliest but now it seems to have changed its mind.
“Since State Government department is looking after the entire system, financial intermediary is not needed. The transport department is capable of timely payment to manufacturers. Moreover, operation and maintenance of the buses is being done by the State Department,” said Hardeep Kumar, Principal Secretary (Transport), Haryana Government.
The State has already procured 150 buses under the JNNURM for Faridabad. It has been allotted around Rs 54 crore for purchase of the buses.