With the Union Urban Development Ministry citing non-availability of funds, seven infrastructure projects — three in Gujarat and four in Maharashtra — under the Jawaharlal Nehru New Urban Renewal Mission (JNNURM) have been badly hit. Upset with refusal of funds, both the States have cited a 2013 Cabinet decision, which states that the installments for the incomplete phase of the Urban Infrastructure Governance (UIG) projects under the JNNURM has to be released.
Gujarat and Maharashtra recently sought a total Rs28.44 crores for seven ongoing projects related to sewerage and water supply. The projects are eligible for Additional Central Assistance (ACA) as per the Cabinet decision, which had approved release of fund to all the projects sanctioned post March 2012 for upto next three years from the date of release of first installment.
“Most of the projects were sanctioned during the fag end of 2013-14. Now under the UIG, these two States have requested for release of second installments for timely completion of the projects,” said a senior official from the UD Ministry. However, at a meeting held to review their status while it was agreed by the UD officials that fund can’t be delayed, joint secretary (Financial Advisor) said that “…because of the current non-availability of funds it may not be appropriate to recommend to release the ACAs, without having clarity of overall expenditure of Ministry (UD) in the coming days.”
Hence it was decided to defer the release of subsequent installments of transition phase projects till the fund availability is confirmed by the Financial Advisor, the official added. The projects that will be affected due to the fund crunch includes water treatment plant and augmentation of Kamraj sewerage treatment plant at Surat, solid waste management in Rajkot, water supply scheme, sewerage scheme in Nanded, water supply distribution system and sewerage collection system in South Nanded.