New Delhi: Cost escalation due to delay
in completion of several key projects linked to next year's
Commonwealth Games will cause an additional expenditure of Rs
1,000 crore from the Delhi Government's exchequer.
The city Government, already facing heat for its tardy
preparation for the mega event, is now grappling with fund
crunch as the PWD has alone sought an additional amount of Rs
700 crore citing cost escalation of its projects.
"The PWD alone has sought an additional amount of Rs
700 crore. The MCD has also asked us to provide Rs 800 crore
to complete the projects related to the mega event," Finance
Minister A K Walia said.
The Finance Minister said the Government has already
approached the Centre for additional fund of nearly Rs 1,000
crore to complete the projects related to the event.
"We are expecting Rs 1,000 crore from the Centre
soon," Walia added.
Officials said other departments like Transport and
Urban development have also sought funds to carry out the
projects linked to the event.
They said the total cost overrun will be over Rs 1,000
crore.
The slump in revenue collection of Delhi Government in
the current fiscal also has the Finance department worried.
Officials said the Government reported a fall of over
Rs 400 crore in collection of tax revenue in the first four
months of the current fiscal.
Worried by the dip in revenue, Chief Minister Sheila
Dikshit herself has asked top officials of the Revenue
department to double up their efforts in tax collection as the
shortfall may impact the government's preparation for the
prestigious event.
Reeling under the impact of the economic slowdown,
Delhi Government had reported a fall of over Rs 1,300 crore in
tax revenue in the last fiscal also. Last year, the government
had collect nearly Rs 14,000 crore.
In view of the dip in tax collection, the Centre had
granted a plan allocation of Rs 2,435.68 crore to it in the
Union Budget, which was an increase of Rs 1,673 crore compared
to last year.
Asked whether projects related to the Games will be
affected because of the financial position of the Government,
Walia said work linked to it will not be affected at all.
Officials said increasing prices of steel and cement
have resulted in the cost escalation.
The Central government earlier this month allocated Rs
1,620 crore as loan to the Organising Committee of the event
to meet the cost escalation.
Bureau Report
First Published: Monday, November 16, 2009, 19:49