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Tamil Nadu

Cash crunch: At least seven smart city projects shelved in Puducherry

The shelved projects include the much-anticipated Multi-Level Car Parking Project, aimed at alleviating traffic congestion in the main town.

Debjani Dutta

PUDUCHERRY: In a setback to Puducherry’s urban development aspirations, several initiatives under the Smart City project have been abandoned due to financial constraints, leaving residents and authorities disappointed.

According to sources, out of the 66 projects tendered with an initial outlay of Rs 894.31 crore, at least seven have been shelved, reducing the implementation budget to around Rs 620 crore. The central government, which typically provides 50% of funds, saw its contributions go unutilised as the Puducherry government struggled to match the required financial commitment for project execution.

The shelved projects include the much-anticipated Multi-Level Car Parking Project, aimed at alleviating traffic congestion in the main town.
Furthermore, an initiative to create disabled-friendly pedestrian footpaths along 130 km stretch, estimated at Rs 129.94 crore, was also cancelled.

The installation of rooftop solar systems in public buildings, at an estimated cost of Rs 22.05 crore, suffered the same fate. This is despite the  mandatory requirement for developing renewable (both solar and non-solar) power sources within the UT to meet its renewable purchase obligation (RPO) through physical energy. Puducherry has a back cumulative backlog RPO of 1,200 MW, according to data available on the electricity department’s website.

Even projects under innovative financing models, such as the rooftop solar under the RESCO (Renewable Energy Service Company) model, valued at `6 crore, were abandoned. The RESCO model, designed for long-term sustainability, operates on a ‘pay as you consume’ basis but failed to proceed due to financial constraints.

The government’s ambitious plan to modernise the old Goubert Market, spanning 2.9 acres, with a modern three-story complex worth `53 crore, was also shelved. Traders’ reluctance to vacate the premises fearing delays in completion contributed to the project’s downfall.

Residents are now waiting for alternative solutions to address these urban development needs.

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