Amrut: LSGD fund reallocation move puts civic body in a spot

Thiruvananthapuram: Corporation, which has managed to maintain a decent pace in implementation of AMRUT projects till date, is in the middle of a conflict with Kerala water authority (KWA) over bill payment for ongoing projects. Trouble arose after KWA asked the civic body to pay a bill worth Rs 7.21 crore to which the latter replied that it was to be met from the amount KWA had earlier transferred to Kannur division.
In April 2019, additional chief secretary (LSGD) had convened a meeting. It was noted that funds were lying unused in various accounts of KWA’s implementing offices while there were bills awaiting clearance in other cities. As per the additional chief secretary’s directive, the fund deposited by corporation, to meet the expense for ongoing projects under AMRUT in Thiruvananthapuram, was transferred to Kannur by KWA.
With KWA raising a fresh demand for the same amount, the mayor informed KWA’s MD that the required funds shall be made available from Kannur sub-division. The government was forced to reallocate funds owing to financial crisis and now corporation is unable to pay bills despite depositing adequate funds at the outset Till June, corporation deposited Rs 54.79 crore with KWA for various projects under water supply, septage and sewerage. Delay in payment of bills is likely to upset the expenditure status of the corporation and its work progress.
As per the system, 20% of fund is paid in advance at the time of awarding a work and then fund is released based on production of bills. Sources said that since corporation is deprived of funds, it is unable to raise alternative funds. KWA handles eight main projects and 45 sub-projects worth Rs 99 crore in water supply sector for the corporation. Till date, 12 works have been completed and expenditure worth Rs 38.27 crores has been met. In sewerage and septage management, KWA is overseeing 24 main projects and 112 subprojects worth Rs 159.81 crore. Now, 38 works have been completed spending Rs 24.72 crore.
In March 2019, the state government accorded sanction to release an amount of Rs 254.36 crore as the share of urban local bodies towards water supply and sewerage projects under AMRUT. However, it was based on the condition that the principal amount and interest will be recovered on equated instalment basis from development fund of local bodies concerned. The interest was fixed at 7.5%. Corporation was directed to transfer an amount of Rs 1.8 crore in April 2019 as repayment for fund allocation from state government for AMRUT project.