Telangana government sits on Rs 400 crore 'Water Board' funds
The project was to be completed in 24 months but CM K. Chandrasekhar Rao had instructed the board to complete it by May.
Hyderabad: The government, it appears, does not let go of any opportunity to divert and sit on funds. The government last year diverted Rs 400 crore meant for the Hyderabad Metropolitan Water Supply & Sewerage Board.
The Board had borrowed the money from Hudco to build a drinking water supply network for the peripheral areas of the city. The board has requested the government several times to return the money but to no avail. Contractors are pressuring the board for payment of bills.
The board had taken up the water supply project at a cost of Rs 1,900 crore, of which Rs 1,700 crore was to be borrowed from Hudco and Rs 200 crore was to come from the government.
On the government’s directions, the board borrowed Rs 700 crore from Hudco in 2016-17 and remitted it into the government’s account. After several requests by the board for the money, the finance department issued a budget release order for Rs 400 crore.
The Director of Treasuries was given a letter of credit for Rs 300 crore. Another Rs 100 crore lapsed for non-clearance of bills before the end of financial year. The finance department has still not obliged on returning the Rs 400 crore balance amount.
The project was to be completed in 24 months but CM K. Chandrasekhar Rao had instructed the board to complete it by May. Work is progressing speedily, though the deadline has lapsed, but the board is unable to pay the project contractors.