Goa Chief Minister Digamber Kamat has said that the Rs 1,000-crore sewerage disposal project cannot be taken up by the state due to lack of funds owing to its weak financial situation.
Although HUDCO has agreed to lend the money to state government for the project, the state does not have the borrowing capacity, he said.
"We will have to take up the matter during the next Planning Commission requesting for more funds for the state to take up the project. As per the current financial situation, it is not possible," Kamat said.
The CM recently faced rebellion by five Congress legislators who had accused him of being anti-development.
Public Works Department minister Churchill Alemao had cited this project as one such example where files are pending with finance department.
Kamat said that he had personally explained Alemao about the technical and financial difficulties to borrow money for this project.
"I can't expand the existing state budget.. We will have to either wait for next budget or planning commission meeting to arrange funds," Kamat, who holds finance portfolio, said.
He said that the state is already reeling under huge financial burden due to implementation of Sixth Pay Commission to its employees.