News Detail

• Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched by the central government to upgrade infrastructure in the rapidly growing cities. But like most other projects, it has sunk into a quagmire of red-tape.Nagpur had got a fair share of JNNURM projects. Had they been completed even one year behind schedule, the city's infrastructure would have been an object of envy. However, most projects are incomplete and there's no knowing when they will be commissioned.Only a few projects directly impacting citizens have been completed as yet. These include the Kalamna railway overbridge, Kanhan water treatment plant (WTP) augmentation from 120 MLD to 240 MLD, and expansion and upgradation of water supply distribution network. Some other projects, that are not apparent to the common man, are water leak detection, water audit and energy audit.

• However, the success stories are few. The list of pending projects in longer. Maskasath RoB has been scrapped, work on recycle and reuse of water is yet to begin and many others are in various stages of completion.In the case of public transport, NMC received its share of funds from the central government but most of it was wasted due to the apathy of the civic body and the state government. The Centre had provided 240 city buses to NMC but they gathered dust for months before they were put to use by NMC's private operator. The state government has been steadfastly refusing to hand over the city bus stand to NMC, which has left the entire bus service in a mess.

• There are many projects which are three or four years behind schedule and crucial for the development of the city, including Ramjhoola railway over bridge (RoB), Mangalwari RoB, Itwari RoB, Anand Talkies railway underbridge (RuB), Pench IV water supply project and implementation of 24X7 water supply project.One of the major reasons for non-completion of these projects has been huge cost overruns. NMC took its own time submitting proposals and then JNNURM steering committee also cleared the projects at a snail's pace. In the meantime, cost of steel, cement and other construction materials had shot up sharply. So, when the projects were finally sanctioned, cost had increased by 30 to 40%.

• As per JNNURM norms any cost escalation has to borne by the concerned civic agency. NMC's effective share in the cost increased from 30% to over 50%. The civic agency tried various sources of funding but the cost of projects has only increased over the years.NMC may only be partially at fault in this regard. However, there is no excuse when it comes to carrying out reforms required to avail JNNURM funds. The central government wants the civic agencies to provide services to citizens on no-profit no-loss basis. This is necessary since the civic agency has pay off the loans taken for the JNNURM projects.

• However, NMC did not do much to increase revenue mainly due to three reasons: corporators opposing any increase in taxes, no increase in tax recovery at existing rates due to callous attitude of NMC staffers, and tax evasion in connivance with NMC employees.Similarly, NMC's experience with e-governance was nothing to write home about. Many staffers simply refused to cooperate as it would reduce their chances of demanding gratification.

Problems

• Projects sanctioned at snail's pace, led to increase in cost.Hike in cement and steel prices put burden on local bodies which had to bear cost escalation.Central agencies like Indian Railways callous in clearing railway over bridges and underbridges.Many project delayed due to land acquisition problems.State government did not hand over Mor Bhavan bus stand for city bus operations.

Solutions

• Set time frame for civic agencies to send proposal and the centre to clearing them.Central and state governments must share cost of price escalation if civic body is not at fault.Time frame should be set for railways and other agencies to clear projects.Local politicians should take up issues with concerned central and state agency.NTPC-like model for acquiring land, with encroachers being evicted in larger interest of city.

Source