The Hindu : Funds crunch may hit development schemes

Online edition of India's National Newspaper
Friday, Mar 07, 2003

Southern States

Southern States - Kerala-Thiruvananthapuram

Funds crunch may hit development schemes

By N.J. Nair

THIRUVANANTHAPURAM March 6. Lack of sufficient funds are likely to be a major hindrance in the implementation of development projects planned by the Thiruvananthapuram Development Authority (TRIDA) for the next three years. Now the authority is exploring the possibilities of generating funds to take up the schemes.

Since many of the road widening schemes initiated during the tenure of the former LDF Government have been left incomplete, TRIDA now has prepared an action plan and drawn up projects to the tune of Rs.219 crores to complete the pending schemes within a specified time.

The construction of roads, tarring, construction of drains and footpaths, shifting of water, power and sewerage lines are part of the project. Similarly, completion of the projects scheduled to begin in 2004 and targeted to be completed by 2008 also need funds.

Other than widening many of the major roads in the city, creation of a land bank on the eastern side of the NH bypass, and the Palayam urban renewal scheme have also been included. As much as 65 acres of land has been notified on the eastern side of the bypass under the Town Planning Act. This land would be taken up for implementing tourism, IT and sports schemes. The authority has demanded that the Government sanction Rs.65 crores on reimbursement terms for implementing the project.

Financial institutions are generally reluctant to finance schemes that are not productive and the authority will have to explore other possibilities to generate funds for implementing the schemes. Now, the Government is attaching top priority for capital development and hence has to provide funds for such schemes too.

According to the Town Planning Act, the local bodies institutions should pay two per cent cess to the authority. Though this is one of the major sources of revenue, the civic bodies have not been paying the cess for the past three years, sources said.

Planners suggest that the local bodies contribute two per cent of their total revenue for road development fund. One per cent of the sales tax, motor vehicle tax and court fees collected from the district should also be given to the fund. This would help expedite the process.

The authority chairman, P.K. Venugopal, also welcomed the suggestion. If funds are provided on time, the projects also can be completed as per the schedule. But it was for the Government to take the final decision, he said.

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