Slow-motion games

Commonwealth Games 2010 can deliver just what our slowing economy needs right now: a demand explosion. But the boost to infrastructure seems nowhere around with preparations yet to gather momentum

Big and quick jumps in demand are a sure-fire remedy for the ongoing financial crisis. Fortunately, preparations for the Commonwealth Games in 2010 can provide such demand jumps. But unfortunately,the preparations have been hampered by funds crunch and bureaucratic delays. The outlook is murky as many projects are running behind schedule. Delhi chief minister Sheila Dikshit has requested the Centre for additional grants for games-related projects. Work has begun on only 19 of the 39 plots auctioned by Delhi Development Authority DDA for developing hotels. It is time the government kickstarted the preparations not only for better conduct of the Games,but also as a measure against the economic slowdown.

Taking Stock

Among the important projects being developed are the Games Village,the sports facilities,and the urban infrastructure. The Games Village,spread over 158.4 acres near Akshardham Temple,is being developed in public-private-partnership between DDA and private developer Emaar-MGF.

To boost citys infrastructure,the Delhi government,along with private players,has planned 59 projects. These include new-grade separators,25 flyovers,road over-bridges and under-bridges,road tunnels,multi-level automated car parking lots,redevelopment of Connaught Place and the old city heritage area,and development of roads around the city. DDA,along with the Indian Olympic Association,is constructing several sports stadia,swimming pools and other sports amenities. Other projects include upgradation of the New Delhi Railway Station which will have hotels,malls and other facilities. Similar upgradation of the airports is also being undertaken.

However,the pace of work has become a cause for concern. Chief minister Sheila Dikshit confessed to despondency at the state of preparations for the Games. Some of the projects have been delayed,which is worrying. But I hope things will be in place before the event as its a question of the countrys reputation. However,she added that when there are too many stakeholders involved,there are chances of chaos and disorder.

The New Delhi Municipal Council NDMC,which handles the upkeep of Lutyens Delhi,has also failed to start projects such as renovation of Connaught Place,construction of multi-layer parking spaces,and streetscaping. As per its previous deadline,these projects were supposed to be complete by July 2010. Parimal Rai,chairperson,NDMC,however,says,We have obtained all necessary clearances from the Ministry of Environment and Forests,Delhi Urban Arts Commission,and the technical committee of DDA. And we are sure of completing the work before the Games.

The NDMC,which received Rs 253 crore under the Jawaharlal Nehru National Urban Renewal Mission JNNURM,has presented a deficit budget of Rs 178.99 crore for 2009-10. The budget shows a 17.8 per cent escalation in expenditure over the previous year. While currently the NDMC is meeting this shortfall by funding projects from its reserves,it believes that this shortfall would be met by augmentation in plan assistance by the state government.

DEVELOPERS RESOURCE CRUNCH

Emaar-MGF,which is developing the Games Village,is reportedly under severe liquidity crunch. In collaboration with DDA,it is developing 1,168 flats at the Games Village. Though the company claims to have sold out all the proposed flats,it had written to the DDA for a loan to complete this project.

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As reported by The Indian Express earlier,the central government is considering a proposal to allow DDA to buy the developers share of flats as the developer has expressed its inability to raise funds. One of the options being considered is that DDA could buy these flats. The main objective is that the project should not be stopped, said urban development secretary M Ramachandran.

Despite repeated attempts by The Indian Express,Emaar-MGF refused to comment on the state of development of its project. DDA spokesperson Neemo Dhar,however,declared that 40 per cent of the development was complete. She said,In no way is the progress of work going to suffer. We are expected to complete the Games Village by April 2010. She also denied that any proposal to buy flats from the developer is under consideration.

Earlier,private developers such Divine Infracom and Tirupati Infra Projects,who had bagged DDA plots for hotel projects,had written to the urban development ministry to stretch their deadlines. Six other hotel developers failed to acquire the necessary clearances and defaulted on payments,leading to scrapping of their projects. These sites will have to undergo fresh auctioning. Further,a new legal tangle has emerged as DDA failed to respond in time to the apex courts query that it has flouted environmental laws in the process of developing the Games Village. This has added to the uncertainty among the stakeholders in the project.

According to the chairman of the Commonwealth Games organising committee,Suresh Kalmadi,because of rise in construction costs,the allotted budget for the Games would have to be raised. According to government figures up to December,the estimated expenditure on the Games would be around Rs 7,907 crore. A state government official says additional Rs 3,500 crore has been solicited from the Centre.

NOT ENOUGH ROOM

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According to the tourism ministrys assessment,about 40,000 hotel rooms are required during the Games. Delhi,at present,offers only 10,000. For the construction of the remaining 30,000 rooms,DDA auctioned plots and offered to add 6,000 more rooms. But in the current scenario only 2,000 can be built as per clearances acquired by hotel companies. Similarly,the supply from Noida and Gurgaon is expected to be 2,000 and 5,000 respectively,compared with the assured figure of 7,000 and 9,000 respectively.

Manav Thadani of HVS,a hospitality consultancy firm,believes that partnership between developers and the government with maximum utilisation of land could make hotel projects viable. He thinks the government should have made hotel sites available with pre-approved clearances or provided single-window clearance for these projects.

What has been accomplished so far does not inspire much confidence about the state of preparedness for the Games. The overall economic slowdown gives another reason to the government to speed up the preparations,not only to better the city for the big extravaganza,but also to boost its economy.

Expenditure on the Commonwealth Games 2010

Project Details Estimated amount Rs. cr

SAI development /renovation of its stadia 2195.00

AITA for development of Tennis venue 62.75

Organising Committee for conduct of the Games 1628.00

For Commonwealth Youth Games CWYG,Pune,

which was a sub-event of CWG 351.48

Security Arrangement for CWG

through Ministry of Home Affairs 277.00

DDA for Games Village amp; sports infrastructure,etc. 631.55

Preparation of Teams 678.00

Overlays 400.00