Bengal fails to get Rs5353cr JNNURM gap funding

West Bengal managed to get around 188 projects to the tune of Rs 5323 crore sanctioned under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) but failed to secure Viability Gap Funding in contrats to other state governments.

Speaking at an interactive seminar organised by the Indian Chamber of Commerce (ICC) on Sustainable Urban Infrastructure Development, Asok Bhattarcharya, minister for municipal affairs and urban development of West Bengal, pointed out that the state’s Kolkata projects lagged behind Hyderabad, Delhi or Mumbai in availing Viability Gap Funding (VGP) but blamed complicated proceedures.

The Park Circus to Parama Island, and Vivekananda Road elevated flyovers and the EM Bypass Bus Rapid Transport System had been forwarded to the Union government for sanction under the JNNURM scheme, said Bhattarcharya.

The state failed to get VGP funding for JNNURM schemes for it urban infrastructure projects, he added. The minister spoke in the presence of Gajendra Haldea, principal adviser for Infrastructure of the Planning Commission. The minister emphasized on more public private partnership projects in the state.

So far around 43 projects have been taken up by various development authorities in the state, cumulatively worth Rs 50000 crore. Kolkata Metropolitan Housing Development Authority (KMDA), which had undertaken the Rs33000 crore Dankuni township project, was doing the Parkcircus to Parama and the Vivekanda elevated flyover projects.

P R Baviskar, chief executive officer of KMDA, said, “Both projects have been forwarded for JNNURM and the first technical appraisal has been cleared, so is the projects are sanctioned, work will start from January 2009.”

While the Park Circus to Parama Island project is estimated to cost around Rs 350 crore, the Vivekanda Road elevated flyover may cost around Rs 155 crore.

If the projects are sanctioned then 35 percent of the capital cost will be funded by the centre under the JNNURM scheme, said Baviskar. Speaking about the Rs33000 crore Dankuni Township project, Baviskar said, “KMDA received consent forms from many farmers from whom land is being procured, but the recent panchayat election has stalled the procurement process.”

KMDA are awaiting the formation of the new panchayat committee and the new procurement price, said Baviskar. KMDA could be revisting and updating its master plans for basic infrastructure, amending the vision 2025 document drafted in 2001. By December 2009, all master plans were expected to be completed.