Centre denies 90% aid to Dharamsala

Lalit Mohan

Tribune News Service

Dharamsala, July 2

The Centre has declined the request of the state government to contribute funds in 90:10 ratio to the Dharamsala Smart City project.

Highly placed sources here said officials had received a communication in this regard.

The state government had written to the Union Ministry for Urban Development to consider Himachal as a special category state under the Smart City scheme. It means that for any development project sanctioned for Himachal, the Centre sanctions 90 per cent aid while the state contributes 10 per cent.

However, the under Smart City scheme, the state government has to contribute 50 per cent of the total cost of the project. The state government also has 50 per cent equity in the company that will implement the Smart City project.

The Centre had released Rs 183 crore for the Dharamsala Smart City project. This means that the state government also had to contribute an equal amount to the company. However, the state government has contributed about Rs 20 crore as its share in the company that amounts to just 10 per cent. With the Centre declining the state request to consider Himachal as a special category state even under the Smart City project, it means that state will have to pay Rs 183 crore as its share to the company.

However, highly placed sources here told The Tribune that the state government could not afford to give Rs 183 crore just for Dharamsala due to its financial constraints. If the state government transfers that much amount to Dharamsala, little fund would be left for other urban bodies and these might find it difficult to pay salaries.

Sources here said the Dharamsala Smart City project was also reeling under acute shortage of staff. In the name of staff, the project just has two outsourced employees who were working as peons. There were a few employees from other government departments working in the project on deputation. However, they have been transferred to their parent departments and employees working on contract have been relieved.

The pace at which the things are working under the project, it seems that no progress will be made until elections. Interestingly, the government has even laid stones of many projects under the Smart City project that are to be implemented under Build Operate and Transfer (BOT) basis.

Dharamsala was selected as a Smart City in May last year. Dharamsala Smart City Private Ltd has been registered as a company. The company has floated 500 shares that have been distributed equally between the Municipal Commissioner, Dharamsala, Deputy Commissioner, Kangra, the Mayor and a government of India nominee.

An international tender has been floated for recruitment of project management consultants in IT, architecture and other specialities.The tenders are likely to be opened in the near future. The work to develop the website of the Smart City, Dharamsala, has been given to NIXI.