State finance minister CM Baid, who heads the all-important `ministerial committee' on projects which are to be externally aided, is learnt to have objected to the World Bank-sponsored project. The project is considered to be `highly expensive' by the government.

The `ministerial committee' has also considered three more projects for external assistance concerning poverty alleviation, urban development and power transmission & distribution. The district poverty eradication project (DPIP) is learnt to have been shelved by the committee. On this project, the external aid component was estimated at Rs 450 crore.

The six urban development projects, which are to get Rs 1,300 crore from the ADB, are learnt to have been approved by the state cabinet. However, nothing is heard about the power project even though the state assembly passed the controversial power reforms bill recently. The reforms bill aims at getting World Bank finance for several power projects to be undertaken in Rajasthan.

The Rs 2,500-crore road project aims at widening of 1500 km of roads in the state. Another 1800 km of roads are supposed to be strengthened with help from the World Bank.

At one stage the World Bank had desired the formation of a committee to effect closer monitoring of the project so that it was completed within given time-frame. The entire survey work for the project has been completed at a cost of Rs 19 crore.