The Hindu : Kerala / Thiruvananthapuram News : Stimulus works to be okayed from today

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Monday, Jun 15, 2009
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Kerala

Kerala - Thiruvananthapuram

Stimulus works to be okayed from today

N.J. Nair

Rs.5,000 crore will be sanctioned in five months

Officials of Public Works and Finance meet today
Development package is 5% of GSDP

THIRUVANANTHAPURAM: The countdown begins for sanctioning the Rs.5,000 crore allocated in the State budget for developing infrastructure as part of measures to give a stimulus to the slowing economy.

The first meeting of officials of the Finance and Public Works departments for clearing projects will be held here on Monday.

The Finance Department is understood to have decided to accord administrative sanction for works estimated at Rs.1,000 crore every month. These will include projects for drinking water supply, irrigation, roads, bridges, information technology parks and improved amenities in tourist spots.

The development package amounts to 5 per cent of the Gross State Domestic Product (GSDP).

The proposal is to route direct investment through public sector organisations and quasi-government agencies, such as the Kerala Financial Corporation, Roads and Bridges Corporation Kerala Ltd. and the Kerala State Housing Board.

Work on 98 bridges, 108 buildings and 205 roads will get going in the Malabar region alone.

Joint ventures have been proposed with private investors for securing private investment. Expansion and diversification of State public sector undertakings are also on the anvil.

Technical sanction

Officials told The Hindu that procedures such as giving technical sanction and floating of tenders would be completed simultaneously to overcome likely hiccups in taking up new ventures.

Instead of taking the conventional route of entrusting the works with the Public Works Department (PWD), the Finance Department is understood to be exploring the option of roping in the Railways, HLL Lifecare Ltd. (formerly Hindustan Latex Ltd.), Infrastructures Kerala Ltd. (InKEL) and the Kerala Industrial and Technical Consultancy Organisation (KITCO).

Preliminary discussions have been held in this regard, sources said.

A mechanism for ensuring the quality of works will be put in place. The existing system for checking the quality will be strengthened.

The PWD’s proposal to set up quality-testing laboratories is awaiting the clearance of the Finance Department. No decision has been made on the controlling authority as well as the nature of laboratories.

It has been decided to plug loopholes in the execution of the projects, the officials said.

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