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NHAI introduces centralised funds management system

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Press Trust of India New Delhi
Last Updated : Aug 03 2016 | 10:07 PM IST
The National Highways Authority of India (NHAI) today said it has introduced a centralised funds management system to ensure better administration of land acquisition compensation funds and real-time information of payments.
The move followed NHAI incurring considerable expenses for acquisition of land, including an expenditure of Rs 19,020 crore, towards payment of compensation for land acquisition for development of National Highways in 2015-16.
"A centralised fund management system has been made operational by NHAI with effect from August 1, which would make it easier to administer the land acquisition compensation fund. State Bank of India has been selected for implementation of the Fund Management System," a statement from NHAI read.
In this system of management, zero balance accounts as per requirement of Competent Authorities, Land Acquisition (CALA) will be opened in states for payment of land acquisition compensation.
The compensation awarded by a CALA will be deposited by NHAI in the centralised account in New Delhi and the payment for land acquisition shall be made by the CALA through the zero balance accounts.
The fund for such payments will be drawn by the state accounts from the centralised one in New Delhi, the statement said, adding that this system, when fully operational, will provide real-time information on compensation payment and balance available in respect of the entire country.
Also, interest earned due to a time lag between deposit of compensation and payment by CALA can be transferred to NHAI from the centralised account. A substantial amount by way of interest can thus be ploughed back.
"After introduction of the Fund Management System in July 2016, Rs 410.25 crore has been transferred to the centralised account for payment of LA compensation as per demand of CALAs in respect of land acquisition under nine Project Implementation Units of NHAI in Hisar, Dehradun, Nashik, Solapur, Ambala, Nazibabad, Somnath, Mangaluru and Mandi," the statement said.

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First Published: Aug 03 2016 | 10:07 PM IST

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