NABARD warns Odisha on pending projects

May 29, 2014 12:00 am | Updated 05:39 am IST - BHUBANESWAR:

Threatens to withdraw funds if projects are not implemented on time

National Bank for Agriculture and Rural Development (NABARD) has warned Odisha government that sanction for development projects under Rural Infrastructure Development Fund (RIDF) will be withdrawn if it fails to implement projects at faster rate.

According NABARD, as on March 31, 189 projects with the RIDF loan of Rs.380.09 crore have not been grounded, out of which 20 projects and 169 projects have completed 12 months and 18 months respectively from the date of issue of sanction letter.

As per existing guideline, a project is considered as non-starter, if it is not grounded within a period of 12 months from the date of sanctioned letter. The sanction would lapse, if the State government fails to ground the projects within a period of 18 months from the date of sanctioned letter.

NABARD in a letter State finance department said the actual number of non-starter projects could be less as some of the projects might have physically started but the department had not submitted any reimbursement claim.

The apex rural development bank urged the government to take a quick review of the status of the projects.

According to NABARD, out of the 1,27,060 projects sanctioned under RIDF XII to XVIII, 75,682 projects have been completed and project completion reports for 46,195 projects have been received by March 31.

The bank cautioned the government to make quick decisions or run the risk of projects automatically getting deleted from the list of sanctioned projects.

A project is considered as non-starter, if it is not grounded within 12 months of its sanction

189 projects with the RIDF loan of Rs.380.09 crore have not been grounded

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