Keonjhar: The 28-km KIDCO road connecting Palaspanga with Bamebari, the first road in the state built on a private-public partnership mode, is plagued by poor toll collection and mismanagement. The project runs a loan outstanding of Rs 58 crore and interest arrears of Rs 24 crore.
Local mining firms came together to form Keonjhar Infrastructure Development Company Ltd (KIDCO) to develop this road. Pursuing the PPP mode, the state government signed an agreement with KIDCO and its construction was undertaken in 2007 with a bank loan of Rs 88 crore.
The government was the guarantor for the loan. The mining companies had also staked their shares. The aim was to collect toll from vehicles and pay off the loan and refund the shares of the mining firms.
The road construction was completed in 2009. But the government allegedly delayed a gazette notification about toll collection, which was taken up much later. Toll collection was initially good, but mismanagement in toll collection was a major drawback, resulting in a markup in the loan outstanding.
As toll collection failed to meet the target on a monthly basis, KIDCO was not able to maintain the road nor paid off its loan.
Now, the road has been in a bad shape at several places while a bridge across river Baitarani near Nayagad is in a precarious state. Bad shape of the road and the bridge has caused a lot of inconveniences for commuters and transporters.
Sources in KIDCO said that initially it toll collections were to tune of Rs 80 lakh per month out of which Rs 2 lakh was spent towards salaries of toll gate staff and road maintenance.
However, the mining sector continued to plunge into slump leading to a sharp fall in mineral transportation. Consequently, it affected toll collection too.
Now, things have come to such a pas that KIDCO is unable to pay the interest installments let alone paying back the loan, it was learnt.
The bank is said to take stern action against KIDCO which is now going through a fiscal crisis.
“The KIDCO held talks with the government pleading for subsidy. We are negotiating with the bank to settle the loan through a onetime settlement scheme,” said Sushil Kumar Mohanty, one of the staff of KIDCO.
A loan to the tune of Rs 88 crore was taken from the bank when the road construction was undertaken out of which only Rs 28 crore has been paid off, it was learnt. PNN
