The cash-strapped City Municipal Corporation has sought Rs. 45.85 crore from State Government to meet out the additional expenses incurred while implementing the Rs. 320.54 crore Mettur – Salem Dedicated Water Supply Scheme.
The scheme was designed with base year as 2020 to receive 120 million litres per day of water to cover population of 8.20 lakh in all the existing 60 wards.
While the Phase I (five packages) was commissioned on December 28, 2015, the Phase II (three packages) is nearing completion and trial run is expected to commence soon. But the project cost has exceeded and the Corporation seeks additional funds for completion of the scheme.
Officials said that the cost incurred towards payment to Tamil Nadu Electricity Board for setting up sub-station at Thottilpatti in Mettur, amount given to National Highways Authority of India for maintenance of pipeline laid at the city entrance, payment made to Tamil Nadu Water Supply and Drainage Board and cost incurred for third party inspection have increased. “A sum of Rs. 7.75 crore was estimated in the project. But the actual cost incurred is Rs. 39.50 crore and the additional burden now stands at Rs. 31.75 crore,” they added.
The project cost for Phase I was estimated at Rs. 118.42 crore and it increased to Rs. 202.33 crore (up by Rs. 13.91 crore). The project cost for Phase II was estimated at Rs. 132.12 crore that increased to Rs. 164.06 crore (up by Rs. 31.94 crore). Thus, the total project cost stood at Rs. 366.39 crore against the estimate cost of Rs. 320.54 crore.
Officials said that the Corporation’s financial position is not sound due to repayment of principle and interest for borrowed money, increase in borrowings for projects and also fall in revenue. The civic body cannot bear the additional project cost of Rs. 45.85 crore and has sought full grant from the government, they added.
