States who miss the bus to return Central funds

In a stern message to States that Central funds cannot be allowed to lie unspent, the Modi Government has decided to withdraw the massive allotment made to the State Governments for procurement of buses.  In 2013-14, the UPA Government provided State Governments `884 crore under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for the purchase of 7,509 buses, but only 2,288 buses have been procured so far. 

The Centre has decided to cancel such sanctions if the States do not submit a report regarding procurement of buses by August 24. The Urban Development Ministry has taken this undue delay in purchase of buses by the States seriously stating that “the funds meant for the welfare of the people have been kept unutilised for the last one year.” 

“Hence it has been decided that funds already released may be withdrawn with interest and the sanction may be cancelled in case the erring State Governments do not furnish the status report regarding procurement of buses within one month i.e. latest by August 24,” said RK Singh, Director (Urban Transport) from the Ministry, which is overseeing the release of funds, in a letter written recently to the States.

During 2013-14, the Ministry had sanctioned 12,000 buses under the erstwhile JNNURM for better public transport facilities in the States. After receiving the purchase order, the Ministry released the first installment of `884.21 crore for 7,509 buses to 18 States covering 114 cities during 2014-15.

The States that have been sanctioned the highest number of buses include Karnataka (1,691), Maharashtra (1,055) and West Bengal (874). 

However, procurement wise, West Bengal takes the lead by purchasing the maximum buses 803, while Karnataka and Maharashtra may lose the fund having procured only 183 and 107 buses respectively as on July 24. Interestingly, Bihar has so far made no purchase of buses under the JNNURM though it has been granted 696 buses. Similarly, Punjab, Goa, Rajasthan, Meghalaya and Tripura have failed to procure any buses.

“Though each city was to submit quarterly progress report through State level Nodal Agencies (SlNA), despite a lapse of more than one year since release of grants none of the cities or States except those from West Bengal have provided the details till date,” the letter adds.Though the BJP-led Government had scrapped the JNNURM project, it has given its green signal to realise the existing bus projects. However, looking at the current scenario, that seems to be far from realisation.