Rs 15 cr spent, Baddi Trade Centre still non-functional

Ambika Sharma

Tribune News Service

Solan, September 30

The multi-crore Baddi Trade Centre (BTC) will be given on rent.

Constructed by incurring Rs 15 crore, the centre has failed to be functional ever since its inauguration in March 2016 by the former chief minister.

The Chief Executive Offcer, Baddi-Barotiwala-Nalagarh Development Authority (BBNDA), KC Chaman, said a request for the proposal had been sent to the state government for floating tenders to let out this building and once a go-ahead was received, the process would begin.

The proposal to construct the BTC over 35 bighas was conceived on a public-private partnership mode and the Centre had sanctioned grant-in-aid of Rs 5.40 crore under the "Assistance to States for Developing Export Infrastructure and Allied Activities" for 2008-2009.

The estimated cost of the project was Rs 10.81 crore and Rs 5.40 crore was granted by the Centre. The state government had extended its share of Rs 3.20 crore and Rs 2.21 crore was supposed to be pooled by the BBN Industries Association. The estimated cost of the project was revised in April 2014 to Rs 21.62 crore, considering the proposed furnishing of the proposed building. Additional funds to the tune of Rs 10.81 lakh were supposed to be raised through term loan from financial institutions.

The civil work was completed in February 2015 and an expenditure of Rs 8.94 crore was incurred on its construction. The term loan could not be raised. Nor was any additional grant sanctioned by the state government. The industry association pooled in only Rs 10 lakh as against their share of Rs 2.21 crore and the state exchequer was burdened.

Later a society, Baddi Heights, comprising 100 corporate founder members, was constituted to run the centre as a society and a memorandum of understanding was chalked out in January 2013 between the society and the BBNDA.

The centre was handed over to the Industries Department in June 2016 as the society could not take over the centre as it was unfurnished. The CAG pointed out that due to lapse on part of the authority in incurring expenditure on the centre without determining and arranging funds for the project, the objective of this centre could not be achieved and Rs 8.94 crore incurred on it could not be put to use.

It was a perfect illustration of wasteful expenditure incurred without fixing the accountability of any officer and serious objections were raised by the CAG over this misuse of funds. The unused building had started showing signs of wearing away.