J&K gets only Rs 40 cr against demand of Rs 195 cr for twin Smart Cities

No adherence to timeframe fixed in Mission guidelines

Mohinder Verma
JAMMU, July 24: Jammu and Kashmir has received only Rs 40 crore against the demand of Rs 195 crore first instalment under Smart City Mission of the Union Housing and Urban Development Ministry mainly due to its failure to make the Special Purpose Vehicles (SPVs) functional by appointing full time Chief Executive Officers (CEOs) and other key managerial personnel.
Both Jammu and Srinagar, the twin rotational capital cities of the State made it to the list of 30 Smart Cities announced by the Union Ministry of Housing and Urban Development on June 23, 2017.
Srinagar figured at No.10 and Jammu at No.21 in the list of 30 Smart Cities, which were selected through competition from out of a total of 45 cities which contested in the third round.
Following announcement, the State Government vide Order No. 1081-GAD dated August 21, 2017 ordered creation of Special Purpose Vehicles (SPVs)–Jammu Smart City Limited and Srinagar Smart City Limited, which were subsequently registered as Limited Companies under Companies Act as per the guidelines of the Smart City Mission.
Thereafter, the Housing and Urban Development Department of the State vide Letter No.HUD/Plan/66/2017 dated October 5, 2017 submitted a proposal to the Union Ministry of Housing and Urban Development for release of first instalment of due Central Share amounting to Rs 195 crore, official sources told EXCELSIOR.
However, despite lapse of over one year since the sanctioning of two Smart Cities for Jammu and Kashmir, the State has failed to get full first instalment of funds from the Union Ministry although other cities, which were selected during the third round have already obtained substantial funds after meeting the stipulations laid down by the Union Ministry, they said.
“J&K has only been provided Rs 40 crore so far as part of project funds and Administrative and Office Expenses (A&OE) funds of Special Purpose Vehicles, which otherwise have not been made functional so far”, sources said.
As per the guidelines of Smart City Mission, after selection of a city activities like making Special Purpose Vehicle functional, appointment of Project Management Consultants (PMCs), preparation of Detailed Project Reports (DPRs) and preparation of Request for Proposals (RFPs) have to be completed within a period of 15 months from the date of selection of a smart city before the projects can be grounded.
However, none of these activities have been completed in Jammu and Kashmir although 13 months have already lapsed since the selection of Jammu and Srinagar cities under Smart City Mission, sources further said.
What to talk of initiating other activities mandatory for obtaining full financial assistance from the Union Government, State Government has failed to appoint full time Chief Executive Officers (CEOs) of the Special Purpose Vehicles although the process for the same was initiated in November last year when applications for engaging professional CEOs were invited vide Advertisement Notice No.HUD/Plan/66/2017-II dated November 15, 2017, they informed.
It is pertinent to mention here that appointment of CEOs is the foremost step towards initiating steps for other activities mentioned in the Smart City Mission guidelines like engagement of PMCs and preparation of DPRs.
“The failure to appoint CEOs and making Special Purpose Vehicles functional in real sense is the major impediment in the release of full first instalment by the Union Housing and Urban Development Ministry for Srinagar as well as Jammu Smart Cities”, sources said.
“Due to this no time-frame can be specified for start of work on development of Jammu and Srinagar as Smart Cities at the required pace”, sources said. They, however, said that work on some projects like multi-storey parking at Bus Stand Jammu and Intelligent Traffic Lights System is going on through convergence mode.