AMC initiates for premature withdrawal of Rs 200 crore FD

- Remaining money to reserve for the smooth operation of the Smart City bus service till 2029.

Lokmat News Network

Aurangabad:

The municipal commissioner Abhijeet Chaudhari has decided to go for premature withdrawal of a fixed deposit of Rs 200 crore kept by the Aurangabad Smart City Development Corporation Limited (ASCDCL) in a nationalised bank. The amount was deposited for the fixed term to recoup the ASCDCL's monetary loss sustained in the operation and maintenance of the Smart City buses in the city.

The civic chief, who is also the ASCDCL chief executive officer (CEO), has decided to spend Rs 110 crore on the development of 44 concrete roads approved under the Smart City Mission. The planning has also been made to ensure the continuation of bus service without any hassles till 2029, it is learnt.

As reported earlier, former ASCDCL CEO A K Pandey proposed the development of 110 roads through Rs 317 crore under the Mission. Chaudhari after taking over the charge set aside the proposal for a tentative period. A budget of

Rs 1,000 crore was approved under the Mission, but the ASCDCL invited a tender valuing Rs 1,150 crore. The development of roads was proposed to be undertaken with the monetary share of the ASCDCL and the AMC, but due to the poor financial condition of the civic body, the planning was made to raise its share of funds for the roads. It may be noted that former CEO Nipun Vinayak. Later on, it was decided to withdraw the FD amount and the approval of the board of directors (BoD) was also obtained to go ahead. The local public representatives were also insisting on utilising the FD amount for development purposes.

Bus service till 2029

The Smart City bus service will continue to operate till 2029. After the premature withdrawal of FD, the ASCDCL will reserve some funds to maintain the service for urban commuters. The bus service will be handed over to AMC after 2029.

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Any prediction on 42 roads?

The ASCDCL has invited tenders to develop 110 roads of valuing Rs 318 crore. The response received was 15 per cent less than the base price. The ASCDCL’s share in the road project is Rs 80 crore, but when the AMC failed to contribute its monetary share, the ASCDCL utilised its share to develop 22 roads. Now, the FD money will be utilised to develop 44 roads (in Phase II). However, the ASCDCL deprive of funds for the development of the remaining 42 roads. Hence it is believed that these roads will now have to be developed through AMC funds. However, it is feared that if the contractor approaches the court with the ‘work order’ issued to him of all roads, then the ASCDCL may land in legal hassles.