ASCDCL on radar for premature withdrawal of Rs 2 crore to buy five electric cars

Lokmat News Network

Aurangabad, Aug 22:

In a surprising development, it has come to notice that the Aurangabad Smart City Development Corporation Limited (ASCDCL) has breached the trust by going for premature withdrawal of Rs 2 crore, from the fixed deposit amount of Rs 200 crore, to buy five electric cars.

Aurangabad was included in the Smart City Mission in 2016-17. Accordingly, the development works valuing Rs 1000 crore were approved under the mission. Of which, the Central Government was to contribute Rs 500 crore, while Rs 250 crore each was the contribution of the State Government and the Local Self-Government (Aurangabad Municipal Corporation). The works are monitored by the special purpose vehicle - ASCDCL. The cash-strapped AMC obtained a loan to contribute its share to the mission.

Earlier, the ASCDCL purchased 100 state-of-the-art engine buses under the Mission. Later on, the then ASCDCL chief executive officer (CEO) Nipun Vinayak

reviewed the public transport service. Hence to encourage the continuation of bus service for 10 long years at a stretch, a sum of Rs 200 crore was deposited in a nationalised bank for the fixed term during his tenure. It was hoped that the loss of bus services will be compensated through the interest earned from the FD. Ironically, the bus service always recorded losses since its inception. The operation and maintenance agreement with Maharashtra State Road Transport Corporation (MSRTC) was scrapped. The ASCDCL appointed a private agency to hire drivers and conductors to operate the bus service in the city.

The decision of buying five electric cars was taken to please the former state environment minister Aaditya Thackeray. The minister had recommended utilising electric vehicles to prevent pollution in the city. Hence to depict that the ASCDCL is following his order religiously, the premature withdrawal of

Rs 2 crore was made to buy the e-cars.

Why 100 buses are not running?

The ASCDCL is avoiding operating all 100 buses daily to minimise their financial losses. Due to the premature withdrawal of money from the FD, the administration concerned is not getting any interest. Hence the losses are not being compensated through the additional income. Citing one or the other reasons, the buses are parked in the bay for the past year. Meanwhile, the ASCDCL sources underlined that 50 buses are plying on road since August 15 when there triggered a hue and cry over the absence of bus service.