NIT keeps Rs2L for NMC against Rs140cr dues in upcoming fiscal

Nagpur: The ongoing rift between city’s two planning authorities — Nagpur Municipal Corporation (NMC) and Nagpur Improvement Trust (NIT) — is likely to increase in the fiscal beginning April 1. NIT has made provision for only Rs2 lakh as against pending dues of Rs140 crore to be paid to NMC in the budget for 2023-24.
NIT board of trustees led by Manoj Kumar Suryawanshi approved the budget a day ago, and expect revenue of Rs1,204 crore in 2023-24. Funds have been earmarked for various works costing Rs1,196 crore and remaining Rs8 crore is likely to be the surplus for 2024-25.
Under the head of expenditure, Rs1 lakh each has been earmarked for Smart City Project, and Cement Concrete Road Project Phase-III. These two projects are being implemented by NMC and NIT is bearing former’s share as per decisions of the state government.
Under Smart City Project, NIT was supposed to give Rs50 crore each in five years beginning May 17, 2016. Thus, it was reportedly required that the civic agency give Rs250 crore for the project by end of 2021-22 fiscal. As per NMC data, NIT is yet to give Rs100 crore for the project.
The central government had reportedly set deadline of June 30 to complete the project. NMC’s special purpose vehicle for the project — Nagpur Smart and Sustainable City Development Corporation Limited (NSSCDCL) — is supposed to complete works of Rs1,000 crore by end of deadline to prevent lapse of funds and loss to the city. Therefore, it is likely to need the money due from NIT in the upcoming fiscal.
As reported by TOI, fresh dispute is going on between the two agencies due to land required for Smart City Project. The said land is owned by NIT and required for rehabilitation of project-affected-persons (PAPs) of the project. But NIT is not ready to hand over the land to NSSCDCL or NMC. NSSCDCL had even offered to adjust the Rs40 crore against NIT’s dues. Still, NIT is firm on its decision.
This was reportedly one of the reasons behind heated discussion held between two IAS officials — municipal commissioner Radhakrishnan B and NIT chairman Suryawanshi — in the budget meeting.
Similarly, NIT is supposed to give Rs100 crore to NMC for the Rs301 crore Cement Concrete Road Project phase-III. This project is likely to be completed in the upcoming fiscal. However, NIT is yet to pay NMC Rs37.5 crore.
The chances of escalation of rift between the two planning authorities cannot be ruled out as NMC presses for its dues. NIT has made meagre provision of funds in upcoming fiscal.
MLC Pravin Datke told TOI, “NIT should be abolished if it is delaying or not ready to give its share in these two projects. It is a violation of government resolutions. NIT is recovering ground rent and NMC is providing all types of public amenities.”
Officials of NMC and NIT refused to comment on these issues.
IN A NUTSHEL
* Rift between NMC and NIT since government gave powers of Gunthewari 1.0 to NIT in 2001
* Dispute over maintenance of Gunthewari layouts, gardens etc
* NMC requires NIT land for Smart City Project
* NIT is not ready to hand over land
* NIT is to give Rs140 crore to NMC for Smart City Project and Cement Road Phase-III
* NIT made provision of only Rs1 lakh each for these two projects in 2023-24 budget
* Rift likely to increase if NMC demands funds