BMC may not accept ADB offer | india | Hindustan Times
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BMC may not accept ADB offer

OWING TO a prohibitive 25 per cent provision for consultancy and other non-plan expenditures, the BMC is increasingly veering round to not accepting the Rs 179.04 crore Asian Development Bank (ADB) loan. What has further emboldened the corporation to think of spurning the ADB offer is the inclusion of Bhopal in the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

india Updated: Feb 02, 2006 16:07 IST
Anil Dubey

OWING TO a prohibitive 25 per cent provision for consultancy and other non-plan expenditures, the BMC is increasingly veering round to not accepting the Rs 179.04 crore Asian Development Bank (ADB) loan. What has further emboldened the corporation to think of spurning the ADB offer is the inclusion of Bhopal in the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

The BMC has submitted proposals worth Rs 2,153 crore under the JNNURM scheme. In fact, the BMC has always been skeptical about the ADB offer under which out of Rs 179.04 crore, actual expenditure on infrastructural works would be around Rs 140 crore. Most of the remaining fund would be spent on other works like consultancy and contingency.

“The ratio might be right as per international norms but the BMC’s financial condition could ill- afford such a huge spending on consultancy and contingency. After all, the BMC will have to return this loan,” argued Mayor Sunil Sood. BJP members too endorsed the mayor’s contention.

BMC chairman Ramdayal Prajapati pointed out that the corporation’s annual revenue collection was not more than Rs 35 crore. Therefore, it was illogical to allow nearly Rs 30 crore on the consultancy and contingency of any scheme.

He also lamented corporators were not being given right information about all these projects despite repeated queries. Of the ADB loan, actual cost on the infrastructure, consultancy and public awareness programmes of schemes would be Rs 141.99 crore. Besides, physical contingency and work contingency would respectively cost Rs 9.85 crore and Rs 27.20 crore.

The State Government and BMC would provide an amount of Rs 30 crore each for this scheme. Under the ADB funded schemes, an amount of Rs 63.30 crore would be spent on improvement of water supply while Rs 46.80 crore is earmarked for sewage system. Besides, Rs 11.83 crore would be spent on solid

waste management. Sources said an amount of Rs 70 lakh was already spent on the stationary even before start of this project and bills were pending in the BMC’s account section.