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PWD puts new projects on hold

At a meeting with chief minister Prithviraj Chavan last week the minister agreed that PWD should focus on the ongoing projects, which are lagging behind due to paucity of funds, instead of taking up new projects.

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The public works department (PWD) minister Chhagan Bhujbal has taken a decision to put on hold new infrastructure projects worth Rs4500 crore due to inadequate allocations of funds in the current budget.

At a meeting with chief minister Prithviraj Chavan last week the minister agreed that PWD should focus on the ongoing projects, which are lagging behind due to paucity of funds, instead of taking up new projects. The PWD ministry has been accorded Rs2,700 crore which was announced on March 23. Of the allocated budget, almost 60% will have to be spent on long-pending projects.

Highly placed sources in the CM office said, “In the given circumstances, it would be very difficult to please all the elected members who have submitted their district’s proposals for roads works. The budgetary constraints make it difficult to take up the new proposals, when the ongoing projects have been lagging due to lack of funds.”

Of the total budget of Rs41,500 crore, chief minister Prithviraj Chavan and finance minister Ajit Pawar were forced against making higher allocations to the PWD. The PWD had placed the demand of Rs6,000 crore.

Taking cognisance of the constraints, Bhujbal has decided to take up work on priority basis within the given budget. He has made it clear that meeting the demands of all the elected MLAs who have given their requirements would be difficult in the current budget.

Sources in the PWD indicate, “The financial crunch is definitely going to slow down the pace of work across state. It would also lead to abandoning many projects for a year, thus incurring higher cost next financial year.”

However, PWD (Public Undertakings) minister Jaidutt Kshirsagar found himself relatively better placed within the given budget allocations. Most of the projects under his department are on build-operate-transfer basis where state investment is minimal.

However, sizeable funds from the budget would have to be diverted to meet the administrative costs of both the PWD and Public Undertakings from the given budget.

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