The Pune Smart City Development Corporation Ltd (PSCDCL) may not receive funds from the Union government under the Smart City Mission this year, as it has failed to fulfil the condition about all recipients utilising 70 per cent of the allocated funds. The agency has managed to spend only 25 per cent of the funds it has received under the Smart City Mission.
In a communication to the PSCDCL, the Centre said it expects the implementation of Smart City projects to be in full swing as the first year installment of Rs 196 crore had been made by it in the first year.
Under the Smart City Mission, the cities that were selected to be developed as Smart city were to be given Rs 100 crore by the Union government, while the state government and the local civic body would have to allocate Rs 50 crore each for the implementation of the projects.
The PSCDCL had received Rs 2 crore in 2015-16 for preparing the Smart City plan and Rs 194 crore in 2016-17 to launch the mission. The agency has received Rs 98 crore from the state government and Rs 100 crore from the Pune Municipal Corporation as part of its special purpose vehicle for implementing the projects. “A total of Rs 394 crore has been received so far for the implementation of Smart City projects till 2016-17 while no funds have been received in 2017-18,” said PSCDCL’s Chief Executive Officer, Rajendra Jagtap.
He said the corporation has received a communication from the Union government, asking it to submit documents to prove that the conditions for allocating funds this year have been fulfiled. The Union government has also asked the PSCDCL to submit the ‘milestones’ achieved in the SCP roadmap, and the list of ongoing and completed projects.
“The PSCDCL will submit a detailed report to the Union government on the status of Smart City projects. We have spent 25 per cent of the received funds and would give the reason to the government,” said Jagtap.
He said most of the Smart City projects being implemented by the PSCDCL had started and payments would be made to the contractors only after completion of the projects. “The ongoing work does not reflect in the expenditure even if the projects are nearing completion. There are many projects which take time to complete,” said Jagtap.
He said the PSCDCL recently reviewed the implementation of projects under the Smart City plan. “The Union government had recently asked us to furnish a list of projects mentioned in the Smart City plan that could not be implemented… there are a few such projects that are not feasible due to technical issues… we will inform the Union government about it,” said Jagtap.