Funds crunch slows down bus stand construction

Of the ₹168 crore estimated for the construction of integrated bus stand in Vellalore, the Coimbatore Corporation’s share is 50%.   | Photo Credit: Siva SaravananS

The shortage of fund has again slowed down the construction of the integrated bus stand in Vellalore.

Earlier this year the civic body had to slow down and then suspend the construction after workers left due to the COVID-19 pandemic, delayed payment to contractor-company that had taken up construction and found itself in a legal tangle regarding land ownership.

Now, the construction had resumed but was slow, the Corporation sources said and adduced the reason to delay in getting approval from the Directorate of Town and Country Planning, Chennai, and securing funds.

When the Corporation had moved the Directorate for approval for bus stand construction the latter had suggested a few changes. The Corporation was carrying out those suggestions to obtain the approval, the sources said.

The other area that the Corporation was working on to resume the construction in full swing was secure funds. Of the ₹168 crore estimated for the project, the Corporation’s share was 50%. It was supposed to get the rest in loan.

The Corporation’s earlier plan was to approach the HUDCO for loan. But it could not convince the funding organisation for loan and therefore had decided to approach other agencies. At present, it was in talks with State Bank of India and TUFIDCO for loan and hoped to get it within a month.

As it stands, the Corporation had spent nearly ₹40 crore on the project, the sources added.

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Printable version | Jan 23, 2022 6:53:45 AM |

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