Business Standard

Mega projects in Madhya Pradesh await funds from Centre

These include twin-metro rail project and a Rs 19,000-cr rural drinking water supply project

A file photo of Prime Minister Narendra Modi with Madhya Pradesh Chief Minister Shivraj Singh Chauhan at a meeting in New Delhi

Prime Minister Narendra Modi with Madhya Pradesh Chief Minister Shivraj Singh Chauhan at a meeting in New Delhi

Shashikant Trivedi Bhopal

In absence of immediate funding, much awaited twin-metro rail project in Madhya Pradesh will be delayed further. Some other projects including a Rs 19,000 crore rural drinking water supply project, Rs 1,300 crore Narmada conservation plan through sewage treatment, construction of toilets in rural areas and an increase in wages for MNREGA labours are yet to get central government nod.

Metro rail project in Bhopal and Indore cities was conceputalised when Babulal Gaur was state chief minister in 2005-06. After pre-feasibility study and surveys, a company Madhya Pradesh Metro Rail Co Limited was formed that announced first phase to start "at least certain kilometers" by 2018 and first phase completion by 2020.

 

The company discussed fund tie-ups with JICA (Japan International Cooperation Agency), a Japan-based funding agency. Later, JICA agreed to fund Rs 12,000 crore at nominal interest rate to be repaid in 40 years. However Central government's share of Rs 1810 crore is yet awaited.

"It is pending at Union Urban Development Ministry and department of economic affairs of finance ministry but the MP Metro Rail company has to send details of the project pertaining to clearances like if the metro rail line crosses any Indian railways line, passes from nearby airport, or any national highway etc. Only then funding may come," said a well-placed government official.

Earlier this year, the managing director of MP Metro Rail Company Limited Vivek Agrawal had said, "Bhopal project will be of Rs 6962.92 crore where in MP Metro Rail Company Limited (MPMRCL) will chip in Rs 4177.80 crore while state government and Central government will contribute Rs 392 crore each."

Similarly the Indore metro rail project will be of Rs 7,100 crore in which MPMRCL will contribute Rs 4260.30 crore while state and Central government will chip in Rs 1,420 crore each.

"In fact both the projects seem not financially feasible as Bhopal and Indore are not that big cities to have metro rail project so early. Yet the government may decide to go ahead with the projects," Ashok Barnwal, principal secretary to the chief minister told BS.

A multi-village rural drinking water supply project is also pending with economic affairs department of Union finance ministry.

Central government has pared funding on its ace scheme National Rural Drinking Water Programme for rural drinking water supply. The issue was raised in the state assembly in month of August this year.

A total of Rs 19000 crore is required to ensure 70 litres per person per day water supply in rural areas. The state has allocated an amount of Rs 590 crore and another Rs 990 crore will come from Central government for the purpose.

During his recent visit to China, state chief minister Shivraj Singh Chouhan had discussed possible loan tie-up with Asian Infrastructure Investment Bank (AIIB) for the project. The state is also in talks with Asian Development Bank and JICA (Japan International Cooperation Agency). State is expecting to tie-up loans with these financial institutions for a sum of Rs 7600 crore.

At present the state has certain habitats where per capital water availability is not more than 40 liters per day. Of the total 1,27,552 habitats, state has 1,08,575 habitats under fully covered in terms of 55 liter of water availability while 18,977 habitats are there where water availability is between 40-55 litres per capita per day.

Besides these two big projects, an installment of Rs 19.66 crore is also pending that would bring habitats under core network.

State also wants to increase wages under MNREGA from existing Rs 157 average per day to Rs 223 per day. In Madhya Pradesh and Chhattisgarh, the MNREGA wages have been fixed at Rs 167, a hike of Rs eight over the previous year's remuneration of Rs 159, which was then the lowest in the country under the rural job scheme.

Similarly under Swachh Bharat Mission state share is also awaited from Central government as a result many toilets are not constructed," a well-placed government official said. Under ASIDE scheme the state had a demand of Rs 24.76 crore but it is pending, if insiders in state government are believed. Under Narmada conservation plan the state is arranging own funds to execute Rs 1,300 crore project.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 15 2016 | 3:52 PM IST

Explore News