Two GVMC projects in limbo

Launching of the two projects are unlikely as the Union Budget makes no mention of the next phase of JNNURM. he pipeline from Raiwada, estimated to cost Rs.330 crore, is expected to improve the supply by 10 mgd. Refurbishment in the northwest part of the city to improve supply will cost Rs.264 crore.

With no hint of the next phase of Jawaharlal Nehru Urban Renewal Mission (JNNURM), projects that already have been cleared are in limbo.

Two projects of GVMC -- for laying a pipeline from Raiwada reservoir to the city and refurbishment of the drinking water supply in the northwest parts of the city -- have been approved by the Central Sanctioning and Monitoring Committee of the JNNURM.

The pipeline from Raiwada, estimated to cost Rs.330 crore, is expected to improve the supply by 10 mgd. Refurbishment in the northwest part of the city to improve supply will cost Rs.264 crore.

However, the recent Union Budget makes no mention of the next phase of JNNURM. For the ongoing projects under it, extended till 2015, a provision of Rs.14,000 crore has been made.

Spill-over funds

The Union government has put on hold spending the spill-over funds of the urban mission and is assessing the progress so far, according to sources. Since the two projects have not been launched and the local body election not held, they are unlikely to get approval for launching, sources say.

The budget says the present corpus of pooled municipal debt obligation facility is to be enlarged from Rs.5,000 crore a year to Rs.50,000 crore for five years. It is meant for obtaining loans by urban local bodies from banks and financial institutions.

Having launched various projects worth nearly Rs.1,900 crore under the urban mission, GVMC has borrowed Rs.370 crore from banks and financial institutions to foot its share of 30 per cent. It still has to repay Rs. 150 crore. GVMC is not in a position to take up any projects with its own resources, it is learnt.