Noida CEO calls for 20% budget cut in all upcoming projects
Noida authority chief executive officer Amit Mohan Prasad on Wednesday directed engineers to try and cut cost of big projects. The objective, Prasad said, was for the authority to work on realistic budgets, instead of spending public funds on unwanted work in big infrastructure projects.noida Updated: May 10, 2017 23:25 IST
Noida authority chief executive officer Amit Mohan Prasad on Wednesday directed engineers to try and cut cost of big projects.
The objective, Prasad said, was for the authority to work on realistic budgets, instead of spending public funds on unwanted work in big infrastructure projects.
Prasad had earlier expressed unhappiness with engineers and other officials in a meeting last week for wasting public funds on useless construction in the name of opulence.
“I have directed the staff to cut cost in big budget projects, which are yet to be started. The officials should have a holistic approach in mind while allocating the budget of a project. They should think about the sustainability of a project in the long run. They should think how it will be
maintained in the future,” said Prasad.
The engineers have been directed to try and reduce cost by up to 20 percent in big projects, including the Rs 750 crore budget multi-level car parking at Botanic Garden Metro station, the Rs 477 crore budget project of a new building of the Noida authority to be built in sector 96 and the Rs 150 crore budget Sector 18 market remodelling project.
The cost cutting drive was prompted after officials realised that the authority was staring at a severe financial crisis.
The authority has failed to recover Rs 20,000 crore land dues from builders, who have turned defaulters.
Officials said that if things continued the same way, then the authority will soon run out of money to even provide civic amenities.
According to sources, in the past engineers made it a habit of mooting handsome budgets for big projects so that they could earn fat commissions. The new Noida CEO has decided to end this practice.
The move comes after the financial department of the authority figured out that a hospital building built in 2011 in sector 30 required Rs 80 lakh per month to pay electricity bills because it was operating a high-tech air-conditioning system. The engineers planned to install a similar AC system in the under construction Botanic Garden multilevel car parking, meant for 8,000 vehicles.
“I have directed officials to revise the budgets of all new projects and get rid of all unwanted construction and design that would require more money and maintenance,” said Manmohan Mishra, financial controller of the Noida authority.
The authority has also decided not to pay for the maintenance of government schools and district hospital, which were built in 2007-10. “Why should the Noida authority pay for the maintenance of health and educational projects. The UP health and education department should bear the running expenses of those structures,” said Mishra.