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Nag river rejuvenation: NRCD clears Rs2,434cr escalated cost
Nagpur: In a major step towards rejuvenation of city’s iconic Nag river, the National River Conservation Directorate (NRCD) on Tuesday approved escalated cost of Nag River Pollution Abatement Project. The cost has increased 65%, from Rs1,476.96 crore to Rs2,434 crore, due to inordinate delay and inclusion of Goods and Services Tax (GST).
City MP and Union minister for road transport and highways Nitin Gadkari held meeting with officials of Nagpur Municipal Corporation (NMC), NRCD, Ministry of Jal Shakti, and Japan International Cooperation Agency (JICA), at New Delhi on Tuesday. Gadkari reportedly directed NRCD to give approval to revised project cost, which was done immediately after the meeting. Municipal commissioner Abhijit Bangar was also present.
The NMC general body had approved revised project cost on July 23 and submitted it to NRCD. Since then, the project was pending for approval with NRCD. Bangar told TOI Gadkari also directed NRCD officials to complete process of loan agreement between Government of India and Government of Japan as soon as possible. “NRCD will write a letter to Central government’s department of economic affairs on Wednesday to hold discussions with Government of Japan. Then, loan agreement will be signed followed by tendering process for appointing contractors to execute the works,” he said.
Bangar added NRCD will also write a letter to the state government to seek its guarantee for the loan. “Share of Centre in the project is 60%, 25% of state and remaining 15% of NMC. JICA will approve long term loan for shares of Centre and state, which they will repay. NMC will only have to contribute its share of 15%,” he said.
When Gadkari and officials of NRCD asked why project cost escalated, Bangar said it was due to price escalation and inclusion of GST. “Project cost of Rs 1,476.96 crore was prepared as per prices in 2014. When they were revised, cost increased to Rs 2,434 crore including GST of Rs 350 crore and consultant fees,” he said.
The project also covers rejuvenation of Pili river along with Nag river and will take four years to complete. JICA had given inprinciple approval, conducted inspection of Nag, Pili rivers and approved the detailed project report (DPR) before it was submitted to NRCD.
NMC is also preparing Nag Riverfront Development Project of Rs 1,600 crore. France-based AFD (French Development Agency) is preparing the DPR and likely to approve long term loan for the project.
Source: Nag river rejuvenation: NRCD clears Rs2,434cr escalated cost | Nagpur News - Times of India