Lokmat News Network
Chhatrapati Sambhajinagar:
Political pressure is being exerted on the Maharashtra Jeevan Pradhikaran (MJP) to complete the new water supply scheme (valuing Rs 2,740 crore) by December 2024. Although political leaders are insisting on the water project by keeping an eye on the upcoming assembly elections, however, the deposition of only Rs 55 crore in the bank account is worrying MJP. Hence it has requested Rs 835 crore aid from the Chhatrapati Sambhajinagar Municipal Corporation (CSMC) to complete the project.
To quench the city's thirst, work on a new water supply scheme is underway. So far, Rs 1,424.17 crore has been received from the Central and State Governments for this scheme. The CSMC transferred this fund to the MJP. Out of this, the MJP had spent Rs 1,368 crore on the work completed so far. Meanwhile, numerous bills have been submitted by the contractor company, which continuously demands payment. Meanwhile, the MJP has only Rs 55.35 crore in its bank account. To complete the scheme, MJP needs Rs 835 crore more. Hence it expects this fund to be provided by September or October. The MJP has also demanded a 3 percent service tax on this scheme, which means at least Rs 900 crore will be required. The MJP executive engineer Deepak Koli confirmed that the office had sent a letter regarding this to the CSMC last month.
Scheme Design
In the Rs 2,740 crore project, the Central Government will provide 25 pc (Rs 685 crore); the state government grant is set at 45 pc ( Rs 1,233 crore), and the municipal corporation's share is determined to be 30 pc (Rs 822 crore). The CSMC has already informed the government that it does not have funds available. In response to this, the state government had assured the municipal corporation that it would provide a 'soft loan' to it to contribute its share in the project.
No Provision
Political representatives are holding a series of meetings to ensure that the scheme is completed by December 2024. However, none of them is willing to take responsibility for securing the financial provisions for the scheme. Officials are indicating that if the municipal corporation's share is not provided on time, the scheme could be delayed by several more months.
Box
Why MJP needs Rs 835 crore?
Rs 150 crore - For contractor’s payment due to extraordinary price increase
Rs 70 crore - Water supply rejuvenation scheme
Rs 149 crore - For undertaking mechanical works
Rs 21 crore - For other mechanical works
Rs 500 crore - Funds required from June to December.