Wednesday January 7, 02:26 AM

Source: Indian Express Finance

SMP seeks Rs 626 crore AIBP fund from Centre

By States Bureau
Subarnarekha Multipurpose Project (SMP) has urged the Centre for Rs 626 crore under the accelerated irrigation benefits programme (AIBP) as it is running short of funds. The project, once completed, will irrigate the fields of Jharkhand, Orissa and West Bengal. Though construction work on the SMP started in 1976 with assured assistance from the World Bank, inordinate delay, because of rehabilitation of tribals, the process of obtaining clearance from the forest department for the around 1,800 hectares that would be submerged by the project and lack of funds, has made it a non-starter. The project cost, which in 2003 was estimated to be around Rs 1,755 crore, now stands at around Rs 5,000 crore, with work worth around Rs 3,000 crore yet to be taken up. According to SMP chief engineer Ranjit Singh, around 60% of the total project work has been completed so far. SMP s major components are Galudih, Chandil and Icha dams along with their canal network. Work on the Chandil dam is said to be 98% complete while work on the Icha dam has not progressed because of the forest issue. The forest clearance issue is in the last stages; we have identified equivalent land and have communicated to the forest department, which too has been cooperating well, Singh told FE on Tuesday. Though the total project cost now stands at around Rs 5,000 crore, we have been getting only Rs 120 crore annually from the Jharkhand government which does not even cover the 10% annual escalation cost of the project, said the SMP chief engineer. If this fund (the Rs 626 crore) comes early, we would be able to complete the Chandil part of the project by another year s time, Singh said. He said while Orissa pays 94% of the cost of the Galudih right main canal, the balance 6% comes from Jharkhand, and in case of the Chandil left canal project, West Bengal pays 5% of the cost while the balance 95% is to be paid by Jharkhand. Similarly, the cost of the Icha dam is to be shared by Orissa and Jharkhand.