While the State Government has asked for at least Rs 2,000 crore for implementation of the PMGSY (Pradhan Mantri Gram Sadak Yojana) schemes, the Union Government is yet to respond to the request.
Chief Minister Naveen Patnaik has also brought this to the notice of the Prime Minister. From the beginning of this fiscal, the State Government approached the Centre by sending the proposal of Rs 2,000 crore for PMGSY. Till date, the Centre has released Rs 400 crore. The State has already spent Rs 650 crore for this Central programme.
With funds drying up to implement a large number of road projects, the PMGSY is virtually in limbo, said a senior official. As of now, Rs 4,000 crore worth road projects are being implemented, and due dearth of funds, the project works suffer badly, he said.
For last few years, the fund flow for the PMGSY has gone down and the projects are delayed with project costs going up, said the official. He said the Union Government is only inclined to provide a maximum limit of Rs 1,100 crore during 2014-15.
Another problem in the PMGSY works is that the prices quoted by the bidders are fixed for the duration of the contract and shall not be subject to revision. But the State Government usually revises the minimum wages time and again.
The PMGSY was launched way back in 2000; and till date, 28,769 km of roads is completed with Rs 11,397 crore having already been spent. However the Union Government has sanctioned Rs 17814 crore and Centre has released Rs 11167 Crore of funds till date.