Funding agency kept in dark on cost escalation

Funding agency kept in dark on cost escalation
Bangalore, Nov 9, DH News Service:

The Bruhat Bangalore Mahanagara Palike (BBMP) has reportedly not intimated the Karnataka Infrastructure Finance Corporation - the funding agency for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) - about the escalation in the project cost.


According to Government sources, two years ago, when the BBMP planned to start the work, the cost of the project was about Rs 17.5 crore but when the work actually started in 2009 November, the cost went up to Rs 19.5 crore.

Government sources told Deccan Herald that under the JNNURM it is essential for the implementing agency to inform the local funding agency of the Union government sponsored programme about the price escalation. “The structure of the JNNURM is such that the funding agency should be informed about any price escalation.

In the case of the Tagore Circle the BBMP has not informed the JNNURM’s local funding agency, the Infrastructure Finance Corporation till now,” said a top government source.