NCRPB to review unutilised building loans

NEW DELHI: States cannot take cheap loan for projects from NCR Planning Board (NCRPB) and sit on them, Centre has warned Delhi and its adjacent states. The capital is likely to be the first state to face action as there has been no progress in building a Rs 100-crore multi-storied office building in Karkardooma for which it had received Rs 20 cr as first instalment in 2013.

Chairing a meeting of the project sanctioning and monitoring group of NCRPB on Friday, Union urban development secretary Rajiv Gauba directed review of the loan sanctioned for construction of the project in East Delhi for cancellation. The NCRPB provides loans to states for infrastructure projects at 7% per annum. Similarly, the project sanctioning and monitoring group warned the Haryana government that the loan assistance of Rs 168 cr for the Rs 223 cr Manesar water supply project would be reviewed, if project works were not started at the earliest.The first instalment of Rs 31.13 cr was released for this project in March last year and the Haryana State Industrial Infrastructure Development Corporation has not submitted any progress report so far.

The NCRPB group also declined to consider Rs 270 cr loan sought by the Haryana Metro Rail Transport Corporation for extension of Metro link from Mundka to Bahadurgarh stating that it was not in conformity with the original financing plan.

Haryana government was also told that NCRPB support for various infrastructure projects would be considered only after the long-pending issues relating to ADB-funded road projects sanctioned in the past were resolved. However, the group approved financial assistance of Rs 1,664 crore for various infrastructure projects costing a total of Rs 2,377 crore.

Credits ET Realty

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