Centre directs ASCDCL to return interest of Rs 35 crore earned upon share in Smart City Mission

Lokmat News Network

Aurangabad, Oct 11:

It a setback to all the citizens, the development of the city planned by the Aurangabad Smart City Development Corporation Limited (ASCDCL), under Smart City Mission, comes to a grinding halt as the Central Government has ordered the ASCDCL to return an interest of Rs 35 crore, earned by it, upon the share of Rs 249 crore granted to it, as a part of the mission.

Aurangabad was declared as Smart City in 2016. Accordingly, the development works of valuing Rs 1,000 crore proposed by the ASCDCL was approved. The period of implementing the works under the mission was of five years. The Central Government was to contribute 50 per cent (Rs 500 crore), while 25 per cent each was the contribution (of Rs 250 crore each) of the State Government and the Local

Self-Government (Aurangabad Municipal Corporation).

Under 50 per cent contribution, the Centre had released Rs 249 crore to the ASCDCL. The money was deposited in the bank and earned an interest of Rs 35 crore upon it. However, the Central Government has now directed the ASCDCL to send the interest money (not its contribution). The decision has pushed the ASCDCL into complex situation as it had launched and planned development works through this supplementary income. It is now feared that all these works are likely to be shelved for idefinite period.

On other hand, the State Government, out of its share of

Rs 250 crore (25 per cent) had released Rs 147 crore, so far. This share is also kept as deposit in the bank, but it had not issued any order stating to return its share. Meanwhile, the Aurangabad Municipal Corporation (AMC) to raise its contribution in the project has obtained a loan of Rs 250 crore.

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The compound interest upon the deposit encouraged the ASCDCL to undertake several development in the city during the last three years. To make the payments to the contractors, the ASCDCL would withdraw the required money from bank as per its need. The five years ended in March 2022. Hence the Central Government prevented ASCDCL from undertaking any new development works under the Mission. Hence, the old works approved before the end of last financial year 2021-22 are going on in the city.

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Plans shattered

The ASCDCL has vowed to develop some roads in the city through the interest money. Earlier, the ASCDCL had also issued work order of developing roads having estimating cost of Rs 318 crore. Hence the resourcing of funds (including interest) was underway. However, the sudden decision has puzzled the ASCDCL and the Aurangabad Municipal Corporation (AMC). The development plans got shattered and they are pushed into complex situation, said the sources.