The Planning Commission has rapped the state government for its inefficiency in executing urban infrastructure projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

Nearly 190 projects were allotted to the state under the JNNURM, but the implementation has been extremely slow because most of the projects are handled by the public sector units(PSUs).

“Public sector companies take too much time and their outcome is also not up to the mark,” said Gajendra Haldia, Principal Advisor (Infrastructure), Planning Commission.

State Municipal Affairs and Urban Development Minister, Ashok Bhattacharya, however, said: “Involvement of PSUs has not slowed down the pace of the projects. The JNNURM is facing financial problems because project cost has increased due to the price-rise.” At present, urban development department has designated only 43 projects in the state to private players.

The minister claimed that unlike other metropolitan cities, the state is finding it difficult to avail the Viability Gap Fund (VGF) that bears 20 per cent of the project cost.

“The procedure of obtaining the VGF is extremely complicated. Its norms should be simplified,” added Bhattacharya.

The Planning Commission official, however, said: “There are no complications in receiving the VGF from the Centre. If a project proposal is convincing, then funds are immediately sanctioned.”

Advocating the entry of private players, Haldia said: “A state should submit its proposals based on a public-private-partnership model that will not only help it to avail the VGF faster but the projects will also consume lesser time. PSUs are not competitive and they do not care to execute a project in time. PPP model will also solve the problem of inadequate funds.” Private companies are more effective than their public sector counterparts because they need to capture the market to run their business, he added.

Several instances point at the inefficiency of PSUs in the state.

The approach road to the Sister Nivedita Bridge, for instance, was dotted with potholes just after four months of its construction, even as the Public Works Department spent over Rs 2 crore on the project.

The state, however, relies more on the PSUs. “Private players are interested in profit-based projects such as housing and township.

There can be no substitute for PSUs, as these are our only option for core infrastructure, transport and slum development projects,” said Bhattacharya.