CSMC to share Rs 822 cr in new water supply scheme!

Chhatrapati Sambhajinagar:

The ambitious water project aiming to quench the thirst of the city’s population till 2050 is underway on a war-footing basis. The estimated cost of the project is Rs 2740 crore and has been included in the Amrut 2.0 Mission. However, it is being feared that the project is likely to get stalled if the Chhatrapati Sambhajinagar Municipal Corporation (CSMC) fails to invest its share of Rs 822.22 crore in the project!

It may be noted that the Central Government will grant a fund of Rs 685.19 crore; the State Government will put in Rs 1,233.34 crore and the CSMC will have to invest its share to materialise the project. Meanwhile, the High Court had given an oral order to the state government to release the share on behalf of the CSMC. Technically, it is not possible for the state to do so. Hence the burden of raising huge finance will fall upon the CSMC only, it is said.

Till today, the Centre and the State had released an aid of Rs 981.65 crore for the new water supply scheme. The BJP leaders through conducting frequent sessions are intending to complete the project at any cost by December 2024. However, the leaders are avoiding to speak a word on the source of funds to be needed to complete the water project.

As reported earlier, the works of constructing elevated storage reservoirs (ESRs), laying of main pipelines and internal distribution pipelines are underway on a war-footing basis, but it feared that the works could be halted for want of funds. As usual, the CSMC is running into a financial crisis. It does not have funds to pay the staff salaries every month. Hence reviewing the situation the High Court had given the oral orders to the state government to share the money of CSMC in the project. Now, the CSMC is sitting relaxed thinking that the state will grant the fund after the court orders.

It is being said that it is not possible as if the State Government gives the share of the CSMC in the Central Government’s scheme, then it will have to give the share of all other municipal corporations and municipal councils from the state. Hence the CSMC has no option but to raise its own share (through loan) on its own, said the sources.

600 crore GST

The Central Government is putting a share of Rs 685 crore in the project. However, the project custodian has to repay back GST of Rs 600 crore on the total project to the Centre.

Works likely to get halted

The works are in the last segment, but it is feared that they may get halted for want of funds. Hence, if the CSMC is told to pay Rs 822 crore share then it will have to obtain a loan. It is a time consuming process as it would take another 6-8 months to evaluate the CSMC properties and mortgage and get the loan. Moreover, the civic administration had already obtained a loan of Rs 250 crore to put its share in the Smart City Mission.