Dharamsala, March 8:The Yes Bank crisis is all set to hit the working of the Dharamsala Smart City project. The money of the project is kept in Yes Bank and now the Reserve Bank of India has imposed a restriction of Rs 50,000 on withdrawal a month from the private bank.
Sources said that Rs 179 crore, about 75 per cent funds of the project, was deposited in Yes Bank.
The funds include grants from the Central Government along with interest accruing over a period of time.
Pradeep Thakur, Commissioner of Dharamsala Municipal Corporation and Chief Executive Officer (CEO) of Dharamsala Smart City Company Ltd, told The Tribune that Rs 179 crore of project money was deposited in the bank. He added that since it was government money, it is secure.
He said that the works under the Smart City project would not be hit due to the Yes Bank crisis, as around Rs 35 crore was deposited in other banks.
“We hope that the Smart City project will soon get its money from Yes Bank with the permission of the RBI,” he added.
The authorities concerned are hopeful of getting the money from Yes Bank but the sources said that in case of delay many works under the project in Dharamsala were likely to be delayed.
At present, 11 works costing Rs 92.75 crore were in progress under the project. As the funds of the project are now stuck in Yes Bank, the payments to contractors may also get affected.
Dharamsala was among the first 12 cities in the country (first in Himachal) to be selected under the Smart City Mission of the Central Government on May 24, 2016. The mission was launched on June 23, 2015.
Comments are closed.