PWD has a Rs 59,000 crore problem

The Public Works Department (PWD) is struggling to raise funds for the next financial year as it looks to complete projects worth Rs 59,112 crore sanctioned during the previous coalition government.

The department is also in a fix on announcing new projects in the upcoming budget and on completing the ongoing repair works in flood-affected regions of the state.

Sources say that cancelling works, which were sanctioned beyond budgetary allocations, would result in severe losses to the state government as it would lead to damage claims by contractors besides increasing the cost of a project four times than its original cost.

According to Deputy Chief Minister and PWD Minister Govind Karjol, works worth Rs 59,112 crore were sanctioned against an allocation of around Rs 4,500 crore.

For instance, works to the tune of Rs 3,490 crore were sanctioned under the Karnataka Road Corporation Limited against Rs 414 crore sanctioned to the corporation. This, coupled with the losses of Rs 7,021 crore suffered during floods, has turned out to be a major headache for the PWD.

Speaking to DH, Karjol said the state had a responsibility to fulfil its commitments.

“That is why we have assured to take up all the allotted works,” he said. Karjol has urged the chief minister to allocate Rs 15,000 crore in the upcoming budget to address some of these concerns.