Rs 1000 cr exhausted in completion of over 1200 works
* 3rd party inspection to be encouraged for transparency
Mohinder Verma
JAMMU, Sept 9: Jammu and Kashmir Infrastructure Development Finance Corporation (JKIDFC) has initiated an exercise to raise Rs 2000 crore more from the financial institutions for funding of languishing projects as loan of Rs 1000 crore taken from J&K Bank has already been exhausted in the completion of over 1200 projects whose fate was hanging in balance during the past many years.
Moreover, a decision has been taken to encourage 3rd party inspection before physical completion of projects to ensure utmost transparency in the utilization of funds and use of standard material.
Official sources told EXCELSIOR that in its 2nd Board meeting the Jammu and Kashmir Infrastructure Development Finance Corporation Limited had proposed to raise Expression of Interest (EOI) for raising loan from the scheduled financial institutions and banks for the purpose of smooth funding of the languishing projects.
After completing all the formalities of EOI, the Corporation had executed an agreement with the Jammu and Kashmir Bank for contracting Rs 1000 crore as and when required.
Out of Rs 1000 crore, the Corporation lifted Rs 900 crore as on August 19, 2020 and made payments worth Rs 848 crore against 1188 languishing projects. The remaining amount is going to be exhausted within a day or two.
“As more projects have been taken up or going to be executed under the Languishing Scheme in order to provide benefits to the people, the Jammu and Kashmir Infrastructure Development Finance Corporation requires additional funds and this issue was deliberated upon in the 10th Board of Directors meeting of the Corporation held recently”, sources said.
They disclosed that it was decided in the Board meeting that 2nd Expression of Interest for Rs 2000 crore will be floated with the interest rate which is negotiated to the minimum (less than 8.50% per annum) with no commitment charges.
It was also decided that repayment will be immediately started in the next following month and the loan will be raised from the financial institutions and nationalized/scheduled banks on such terms and conditions as may be mutually agreed.
The Board has also decided that the revenue of the Corporation will be streamlined and escrowed. Moreover, stress has been laid on creation of a resource wing to tap the important departments for streamlining the project revenue stream.
Observing that some Nodal Officers have been uploading bills after 25% physical completion, the Board, after detailed discussions, decided that a committee will be constituted for project appraisal and third-party inspection will be encouraged before physical completion of the projects.
“The Board has also decided that the Corporation will undertake procedures so as to check the tendered and non-tendered projects so far undertaken by the Corporation and formulate a detailed report”, sources said, adding “moreover a committee will be constituted for appraisal of the projects and implementation of minimum 10% completion before raising the next invoice on JKIMS portal”.
They further informed that Board headed by Financial Commissioner Finance Dr Arun Kumar Mehta has decided to put in place with immediate effect Project Monitoring Unit and debit servicing commensurate to revenue accrued to save the future interest liability.
The Board also accorded sanction to grant of Rs 15,000 per person to officials of the Corporation as TA/DA for each Darbar Move as Corporation is moving like other Darbar Move offices of the Union Territory of Jammu and Kashmir.
It is pertinent to mention here that fate of the projects of immense public importance which have been completed by the Government under Languishing Scheme was hanging in balance during the period between five and 25 years by utilizing the money raised by JKIDFC.
The Corporation was established as per the decision taken by the State Administrative Council (SAC) on September 5, 2018 to provide fillip to the developmental activities across Jammu and Kashmir. Moreover, the Corporation was authorised to raise a loan not exceeding Rs 8000 crore from various financial institutions for completion of large number of languishing projects.
Since Corporation has exhausted Rs 1000 crore and has been authorized to raise Rs 2000 crore, it would be in a position to take loan of Rs 5000 crore more in future for the completion of languishing projects.
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