GUWAHATI, Oct 31 ? In the backdrop of the Union Government earmarking ten per cent of funds of various ministries for utilisation in the North East, a new initiative of the Union Ministry of Urban Development (UD) has raised serious concerns. If implemented it would only siphon off funds meant for development of the region.
The UD Ministry has recently asked some state governments in the North East that funds sanctioned by it should be executed by the National Building Construction Corporation (NBCC). This is a notable departure from the earlier practice when funds released by the UD Ministry could be used in projects undertaken by the state PWD.
With reference to three projects, namely the construction of storm water drainage scheme for Jorhat master plan area, reconstruction of Kohima Super Market complex, and providing gravity water supply to Tuensang town, Nagaland, the ministry has already accorded its approval, pending consent of the state governments concerned.
Awarding the contracts to the NBCC will entail an additional expenditure of ten per cent on the state governments, as the NBCC charges that amount as agency charges. For a cash-strapped state Government, the wisdom behind such a move is highly questionable, official sources said. The Rs-1519.35 lakh Jorhat drainage scheme will have a revised cost of Rs 1,671.29 lakh if it is entrusted to the NBCC.
Secondly, the sources pointed out, the track record of the NBCC as far as the quality of its projects in the State are concerned, leaves a lot to be desired, with the Noonmati storm water drainage project being one example. And more importantly, the NBCC is not answerable to the State Government for any lapse on their part in the execution of projects.
Another fallout of the move that may not serve best the interests of the State, is that the NBCC uses its own infrastructure and manpower for construction purposes in the State. It is worth mentioning that the Nagaland Government has already taken a firm stand against awarding the contracts to the NBCC.