Centre refuses to sanction fund for Kundamestri project

KUWSDB has prepared an action plan of Rs 30 cr project

Centre refuses to sanction fund for Kundamestri project

Koothole, the main source of water supply to Madikeri town. DH Photo

When the project was envisaged, the estimated cost of the project was Rs 23.64 crore. However, it was revised to 30 crore during 2010-11. The State government has decided to bear Rs 15 crore and it has been decided to borrow loan for the remaining amount.
The Karnataka Urban Water Supply and Drainage Board has prepared an action plan of Rs 30 crore for the Kundamestri project and submitted to the government on June 11 for approval.

The Board has also requested the Urban Development Department Secretary to give administrative approval for the revised project before September 23, 2010 as the tender period ends on September 23 and the project is must to the district, highly placed sources told Deccan Herald. 

As per the earlier plan, of the Rs 23.64 crore, the Centre’s share was Rs 18.91 crore. However, no information was available as to why the Centre refuse to fund the proposed project, sources added.

In fact, the Karnataka Water Supply and Drainage Board had invited  tender for the first phase of the work at the cost of Rs 7 crore and the contract was given to Sai Sudheer Infrastructure Company from Hyderabad.

As per the earlier project, the state government and the Madikeri CMC must have borne 10 per cent of the total project cost.

In fact, a sum of Rs 2.36 crore had been earmarked for the project under Chief Minister’s Small and Medium Town Development Project. If the Centre had released the fund, then the project would have been started. 

According to the proposal submitted to the government, the Board had decided to borrow loan from financial institutions to complete the project and the CMC had agreed to repay the loan with interest.

It has also decided to implement the project through Karnataka Water Supply and Drainage Board. In case, if there was any increase in the project cost, then it will be borne by the CMC, said Board to the government in the proposal. 

The sources said that CMC has agreed to maintain the water project after its completion.

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