Firm managing DND Flyway has recovered cost: RWA body says, citing CAG report
The Federation of Noida Residents Welfare Association (FONRWA) has written to the chairman-cum-CEO chief of Noida to terminate the agreement with the Noida Toll Bridge Company Limited (NTBCL), concessionaire for Delhi-Noida-Direct Flyway, as it has recovered the cost of the projectUpdated: Oct 04, 2017 22:31 IST
The Federation of Noida Residents Welfare Association (FONRWA) has written to the chairman-cum-CEO chief of Noida to terminate the agreement with the Noida Toll Bridge Company Limited (NTBCL), concessionaire for developing and maintaining the Delhi-Noida-Direct Flyway, as it has already recovered the cost of the project.
FONRWA has demanded that the authority should take over the DND flyway to avoid “further unnecessary recurring costs and expenses” to be incurred by NTBCL.
The federation has cited a Comptroller and Auditor General (CAG) report, which has reportedly said that NTBCL has by and large recovered the cost of the project till March 31, 2016.
The federation had filed a PIL in November 2012 and the Allahabad High Court had in 2016 ordered the NTBCL not to charge toll from the commuters for using DND flyway. The DND has been toll-free since October 26, 2016.
NTBCL had challenged the HC order in the Supreme Court. The apex court upheld the HC order and directed CAG to verify the claim that the cost of the project has not been recovered yet.
The CAG, in its report, has said NTBCL is yet to recover only Rs 15 crore.
“CAG has stated that the memorandum of understanding (MoU) signed in 1992 had recommended the rate of return of 20 per cent based on the rates when the country was facing serious economic crisis. The rates came down to 13 per cent. The reasonable rate of return should have been around 14 per cent,” said AN Dhawan, patron, FONRWA.
“It is high time that the concession agreement between NTBCL, Noida Authority and IL&FS (Infrastructure Leasing & Financial Services Limited) should be terminated,” said Dhawan.
As for future recurring costs/expenses which may be incurred over the life span of DND flyway, the CAG report suggests that options of revenue generation from advertising on the flyway and utilisation of surplus land leased to NTBCL, etc. need to be explored by government/Noida authority, said Dhawan.
NTBCL officials could not be reached over phone. A questionnaire sent on e-mail did not elicit a response.
Despite repeated attempts, Noida authority chairman was also not available for comment.
First Published: Oct 04, 2017 22:31 IST