Suhail Bhat
Srinagar, Jan 11: The work on over 1000 projects that were approved for execution under the languishing projects in 2018 has come to a halt as the funds for the scheme have run out and the bank that was sponsoring the initiative has reached its credit limit.
The Governor’s administration in June 2018, identified around 6,000 projects as languishing as they had been started without funding and required special attention. In September 2018, the Government established the Jammu and Kashmir Infrastructure Development Finance Corporation (JKIDFC) with a mandate to raise loans for these projects amounting to Rs 800 crore.
The JKIDFC approved funds for over Rs 2367 stalled projects from a high-powered committee in 2021. “The Panel approved 2367 projects for funding under the scheme worth Rs. 7152.49 crore. Over 1200 projects have been completed so far. But funding issues have delayed the completion of the rest of the projects”, an official privy to the details said, adding that the scheme was launched to complete the projects that have been stalled for more than 10 years without putting additional financial strain on the Government.
However, the contractors who were entrusted with the projects lamented that the flow of funds was smooth in the first year and that the funds started to diminish after that. “We are waiting for the bills of work that have been completed and work done claims have been submitted for payment. “The projects are of great public importance, but a lack of funds is hampering their progress”, president of the Kashmir Contractors Coordination Committee, Ghulam Jeelani Purza, said.
The projects, which are of great public importance, were pending in several departments across J&K, including the Power Development Department, the Jal Shakti and the Horticulture Departments, Water Supply Scheme Haritar, Water Supply Scheme, Ningli Ghat, Water Supply Scheme, Food Park, Water Supply Scheme and Amarpora Tarzoo are some of the pending projects in the Jal Shakti Department. Projects like the establishment of fruit and vegetable markets in Sopore, for example, were also included in the project. Road widening and upgrading projects are also underway in Sopore, Rawooch, Hamam-Manarkoot, and Rafibad.
Shafat Yaha, General Manager, JKIFC, told Excelsior that they have invited Expressions of Interest (EoI) from reputed RBI-regulated banking and financial institutions/companies in the country to submit written proposals for advancing loans of Rs 2,000 crore to be availed during the remaining months of the current financial year 2021-22 and the first quarter of the next financial year (2022-23).
“We have to approach these financial institutions as we are dependent on them. By the 21st of January, we will have opened the EIOs, and the money will be available by the end of the month”, Shafat Yaha remarked.
He said that they have issued notice to the Jammu and Kashmir Bank, which was financing the projects and has stopped funding due to exceeding their credit limit. “We have sent a notice to them to clarify their stand on whether they want to continue their approval or not”, he said.
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