Dismayed over delay in execution of infrastructure and development projects in Jammu and Kashmir, Governor Satya Pal Malik has directed all departments to submit monthly progress reports on projects to ensure timely execution of works, a senior government official said.
The official said failure to complete works in time has led to cost overrun of about Rs 26000 crore on 10 central projects alone.
"Besides there is a liability of Rs 1200 crore on account of works done by contractors under various departments," he said. "The government is finding to difficult to manage funds out of its own kitty. So the need has arisen to raise loans to the tune of Rs 8000 crore from financial institutions in the country to liquidate debt."
This grim scenario has led the governor administration ask the departments to furnish monthly reports to the principal secretary planning and development "for consolidation and its onward submission to the principal secretary to Governor by third of every month".
According to officials, the government has decided to take action against officials responsible for delaying projects.
"Government is not able to evaluate performance of their departments on the basis of timeline completion of targets, outcomes of the schemes, priorities fixed, quality of work done, and status of benefits of projects due to non-submission of progress reports." The government is also concerned because it loses funds that are not utilised. "If funds are released then the concerned officials will be responsible for any lapse," the official said.
It is pertinent to mention, that last week state administrative council has decided to infuse capital in the delayed projects that are facing cost overrun. The government has invited bids from financial institutions, banks regulated by Reserve Bank of India to raise Rs 8,000 crore for the newly incorporated Jammu and Kashmir Infrastructure Development Finance Corporation (JKIDFC).
State's finance department has invited expression of interest (EOI) from reputed RBI regulated banking and financial institutions and companies in the country to submit written proposals for advancing loans up to Rs 8000 crore within two to three years.