Probe likely into JNNURM projects taken up by VMC

The civic body have spend only Rs.172 crore so far, of its share of Rs. 386 crore in the revised cost estimates. Incidentally, the Central government also voiced serious concern over the VMC’s ability as it could complete only six of the twenty projects sanctioned to it under the JNNURM during 2005-2014.

The developmental works taken up by Vijayawada Municipal Corporation (VMC) under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) are likely to come under scanner shortly.

The State government has decided to constitute a special commission to inquire into the progress and implementation of the projects, according to Chief Minister N. Chandrababu Naidu. “The VMC is paying Rs. 3 crore towards interest on loans worth of Rs. 350 crore borrowed by it for the JNNURM, though there is no considerable progress in the progress. The government has decided to inquire into the matter,” the Chief Minister said at a review meeting here on Saturday.

Incidentally, the Central government also voiced serious concern over the VMC’s ability as it could complete only six of the twenty projects sanctioned to it under the JNNURM during 2005-2014. Union Urban Development Minister M. Venkaiah Naidu said that of the corporation’s share of Rs. 386 crore in the revised cost estimates, the VMC could so far spend only Rs.172 crore.

Cost matters

In contrary, the VMC has been claiming that it had spent Rs. 260 crore, taking the total expenditure to Rs. 900 crore. The VMC has taken up 19 projects valued at Rs.1418 crore. Later, the projects’ costs were revised and pegged at Rs. 1,788 crore. The APUFIDC has released Rs. 641 crore towards the Central and the State governments’ share of 70 per cent of the projects cost.

The VMC has also been claiming Rs. 200 crore dues pertaining to the JNNURM programme from the State government, but the APUFIDC, a nodal agency to release the funds, has been asserting that no dues are pending. There are allegations that the VMC officials flouted the norms in implementation of the projects. The VMC bypassed the tendering committee while approving tenders valued over Rs.10 crore. There are audit objections over approval of tenders and awarding of work orders also, which the government took a serious view. There are also allegations that the Corporation officials diverted the JNNURM funds.

The JNNURM projects like Bus Rapid Transit System (BRTS) have been mired in controversy. The Corporation could not complete these BRTS project which portrayed the Corporation performance in poor light.