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This is an archive article published on January 25, 2000

Now, Deshmukh Govt too will float bonds for funds

MUMBAI, JANUARY 24: After crying hoarse over the Sena-BJP government's move to raise funds for public works by way of bonds, the cash-star...

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MUMBAI, JANUARY 24: After crying hoarse over the Sena-BJP government’s move to raise funds for public works by way of bonds, the cash-starved Democratic Front government has decided to offer bonds to raise Rs 4000 crore to Rs 5000 crore for completing the ongoing projects undertaken by the water conservation, irrigation and public works departments in a time-bound period.

The decision of the Front Government has come as a surprise, since immediately after it came to power in October 1999, it had launched attacked the erstwhile Sena-BJP government for taking the state to the brink of bankruptcy. The Finance Minister Jayant Patil had also criticised the alliance for raising money through bonds which offered a very high rate of interest. In fact, in an attempt to expose the Sena-BJP alliance, the Front Government had also presented a White Paper on the economic situation during the winter session of the State Legislature at Nagpur.

In an interview to The Indian Express on the eve of completing 100 days the office, Chief Minister Vilasrao Deshmukh said “we are facing a piquant situation. On one hand we do not have funds to complete the projects, on the other hand, we are unable to abandon them. Under such circumstances, we have no alternative but to raise funds through bonds.”

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Deshmukh said his government will soon empower the Krishna Valley, Marathwada, North Maharashtrta and Vidarbha Irrigation Development Corporations, Maharashtra State Road Development Corporation and State Jeevan Pradhikaran to raise bonds to complete the on-going projects.

“Our responsibility is to ensure that projects, particularly those for providing drinking water, roads and irrigation are not abandoned due to financial constraints. For the purpose, it is essential to take all necessary steps to raise resources,” Deshmukh said.

On the performance of his government during the 100 days, Deshmukh said the biggest achievement was that he was able to restore confidence in all the sections of society. “We restored confidence among all the communities. Now, people from all walks of life, are approaching us for redressal of their grievances,” he said.

On the controversy over construction of 55 flyovers, Deshmukh said when the proposal was mooted, the Maharashtra State Road Development Corporation had submitted the flyovers will ensure huge saving in terms of fuel cost and time. “I have asked the department to set up an independent agency to examine the claims of the corporation,” he said.

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Deshmukh said immediately after he took over the reigns of the state, he had stayed all the decisions taken by the erstwhile Sena-BJP government, since he found that quite a large number of them were for personal benefits. “After careful examination, I have vacated stay on all works of public interest. Stay on personal decisions will continue till the department submits me the report,” he added.

On the controversial Shivshahi Punarvasan Project to provide free houses or flats to slumdwellers, Deshmukh said he has asked the housing department to submit a comprehensive report on the entire project. “The original idea was to rehabilitate the slumdwellers on the same place. However, under the revised project, the builders were given plots owned by Maharashtra Housing and Area Development Authority. As a result, the basic purpose of the scheme was defeated. As such, we will have to re-examine the whole scheme,” he added.

On the performance of his cabinet colleagues, Deshmukh said though, by and large it was satisfactory, now it was essential that they spent more time in Mantralaya and pay more attention on the administrative work. “ I have asked my cabinet colleagues to be in Mantralaya on at least for four days in a week, so that administrative work is not affected adversely,” he said.

Deshmukh justified the massive concessions granted to powerloom operators from Bhiwandi by Minister of state for Energy Padamsinh Patil, saying, it was an accepted principle of settlement. “Personally, I feel there is nothing wrong in the decision. Instead of writing off the entire amount, now we can expect recovery of some arrears,” he added.

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When his attention was drawn to the sudden spurt of Pakistan’s ISI, Deshmukh stressed the need for more effective coordination between the central as well as state agencies to deal with the ISI with an iron hand. “From the reports, it appears that there was lapse on the part of one or the other official. Under such circumstances, we will have to strengthen our network to stop the ISI activities,” he said.

Deshmukh also felt the need for a code of conduct among the constituents of the Democratic Front. “At the Mantralaya level, we have full coordination between Congress and NCP. However, at the district level, we will have to make more efforts, mainly to improve the image of the front government,” he added.

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