Aurangabad:
The works to develop 22 important roads valuing Rs 80 crore, under Phase I, have been started by the Aurangabad Smart City Development Corporation Limited (ASCDCL) under the Smart City Mission. The special purpose vehicle (SPV) is now striving to develop 35-40 roads more roads by spending around Rs 100 crore. Hence it is working out to make provision for the required funds to undertake the road works under Phase II.
Earlier, the ASCDCL had planned to develop 111 roads by spending Rs 318 crore under the Mission. Of which, the monetary share of ASCDCL was Rs 80 crore and the AMC was Rs 238 crore. However, the project could not materialise as the cash-strapped AMC showed an inability in contributing a hefty share. Instead, it demanded the state government contribute the share on its behalf.
On other hand, the state government had released Rs 274 crore, so far, to the AMC for the construction of important roads in the city. Later on, efforts were made to get more funds from the government, but due to the absence of consensus between the public representatives (local legislatures), the government did not sanction more funds.
According to sources, “The political persons insisted the ASCDCL withdraw Rs 200 crore which has been kept as the fixed deposit in the bank. The deposit was kept by the past ASCDCL chief executive officer to ensure that the Smart City Bus project sustains for at least 10 years.
The politicians suggested first earmarking the funds needed for the smooth operation of the Smart City Bus service for a couple of years more and utilising the remaining money for roads. As per norms, the ASCDCL after operating the buses for a certain period will hand them over to the AMC. Hence the ASCDCL is striving to make a provision of Rs 100 crore from this FD amount.
Rs 100 crore road tenders by AMC
The AMC in its annual budget has made a provision of Rs 200 crore for the development of roads. Hence, the AMC has decided to construct roads by spending Rs 100 crore. Earlier, the administrator hinted at inviting four separate tenders, each of valuing Rs 25 crore, to get the works done soon. However, all eyes are set on when the AMC floats the tenders, what will be the response to them and will the contractor show interest to take the contract according to sources they fear the delay in getting their due payments.