Keonjhar: The first road project in the state on Public Private Partnership (PPP) mode has failed miserably thanks to flawed management and corruption, a report said.
The state government had in 2007 entered into an agreement with Keonjhar Infrastructure Development Company Limited (KIDCO), an association of mining companies operating in Keonjhar district, to lay a road between Palaspanga and Bamebari.
While KIDCO constructed the road taking loan from a bank along with its own funds, the state government was the guarantor in the project. The objective was to recover the cost of construction through toll collection.
However, there was inordinate delay in opening of toll gates due to delayed gazette notification by the government. Though, toll collection began in due course, the loan burden started increasing due to flawed management and irregularities committed in toll collection.
On the other hand, lack of proper upkeep and substandard quality construction has now left the stretch unsuitable for commuting. A bridge across river Baitarani near Nayagada poses threat to the lives of commuters, a report said.
According to KIDCO sources, nearly Rs 80 lakh is collected every month from the toll gates of which Rs 2 lakh is spent on staff salary and maintenance. However, there is a dip in number of trucks that pass through the toll gates due to closure of mines. The collection is now not adequate to pay the interest of the loan, it was learnt.
While there is a loan burden of Rs 60 crore on KIDCO, it pays Rs 24 crore as interest per annum. The body is in trouble as the bank has signaled to take strong measures due to non-payment of interests.
Meanwhile, KIDCO officials are speaking to the state government for subsidy and talks with the bank are on for a one-time settlement, a report said.
KIDCO had incurred a loan amounting to Rs 88 crore at the beginning of which it has made a repayment of Rs 28 crore so far, an official said. PNN
