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Development projects worth ₹150 cr stalled in PCB due to non-availability of GST funds
According to Amit Kumar, chief executive officer of the PCB, neither the state government nor the central government has taken up the PCB-GST issue, following which, the board is facing a severe financial crunch
Development projects, under the Pune Cantonment Board (PCB), estimated to be worth Rs 150 crore, have been hit as the PCB has not received its share of goods and service tax (GST) funds from the state government since July 2017.
According to Amit Kumar, chief executive officer of the PCB, neither the state government nor the central government has taken up the PCB-GST issue, following which, the board is facing a severe financial crunch.
Through the available reserve funds, the PCB can pay salaries to its employees for the next three months only.
The developmental projects that have been hit are: commercial complex at Dhobi ghat; construction of staff quarters; construction of multi-level parking facility; remodeling and sewage improvement project; replacement of water supply lines; construction of road and drainage; and beautification of gardens.
Major General Navneet Kumar, the General Officer Commanding (GOC), south Maharashtra and Goa sub-area said, “ The PCB is going through financial crisis and developmental works cannot be carried out in absence of funds. Our share, that is ₹150 crore is due from the state government. PCB is one of the high-value cantonments in the country and has been contributing towards the GST revenue through its acclaimed eateries and business establishments.”
“The residents of the cantonment area are expecting the administration to develop the area, but the lack of GST funds are hampering the development. If the situation persists, it may lead to crisis in the governance, which is a big worry,” added Major General Kumar.
Amit Kumar said, “The PCB has been spending Rs 60-70 crore annually on the infrastructure maintenance in the area. The local body tax has also been abolished, if we do not receive the GST revenue we will not be able to pay salaries to the employees. We are resorting to cost-cutting measures to make up for the shortage, but, the gap is huge and the GST funds alone, can help us tackle this financial crunch.”
“We were planning to file a case in this regard, but the legal opinion obtained states that, a government body cannot file a case against another government body,” he added.
Key projects hampered
Construction of commercial complex at Dobhi ghat: ₹16 crore
Construction of foot over bridge on Shankarsheth road: ₹ 2.50 crore
Multi-level car parking: ₹24 crore
Cleaning and beautification of Bhairoba Nullah project: ₹84 crore
Construction of multi-level parking and podium garden at JJ Garden: ₹10 crore
Replacement of old water pipeline: ₹10 crore
According to officials, before the implementation of local body tax the govt would disburse ₹40 crore service charge to the cantonment. Post the abolition of the local body tax, no funds have been released.
Army officials stop Bhairoba nullah project, allege violation of norms
The beautification and restoration of the Bairoba nullah has come under the scanner of the defence authorities in Pune.
The project, which was started by the Pune Cantonment Board (PCB) and Hinduja Foundation, has been outsourced to Green Thumb foundation.
However the project work was stopped by the defence authorities last week who claimed that the area is an A1 defence land and no construction is permitted.
Clarifying the matter, Colonel Suresh Patil , chairman of Green Thumb Foundation sent a letter to Major General Navneet Kumar, the General Officer Commanding (GOC), south Maharashtra and Goa sub-area on August 5, stating that the temporary structures were put up in order to provide shelter to the security guards. He also stated that the beautification project will bring laurels to the Indian Army.
In response to this letter, Major General Kumar said, “The project is in association with the PCB and Hinduja Foundation and was only outsourced to Green Thumb Foundation. They have violated the terms and conditions in the contract. The Green Thumb Foundation has no authority to fight with us over this matter.”
He further explained, “According to the contract, no construction can be carried out on the defence land. It came to our notice that the clearances were flouted. We had issued a notice to the foundation to clear the land. After two informal meetings, and several warnings, they did not pay heed to us. Creating infrastructure near military establishment is a security threat and cannot be allowed.
Colonel Suresh Patil, said, “There has been no illegal construction. The temporary hut was made for two security guards who were incharge of equipments and plantation. We have planted 5,000 trees and have cleared all the debris. We are working to beautify the nullah. Despite this, the army authorities locked the gates of the nullah and have stopped the project.”
