Revised civic work rates crush Corporation

KOCHI: The decision by the state government to make the revised schedule rates for the civic works applicable for the local bodies too is a big blow to the Kochi Corporation. Now the civic body, which is already reeling under acute financial crunch, will have to bear the extra liability of finding funds for the civic works that will be implemented in the coming months. The schedule of rates is for estimating purpose and shall be followed both for original and maintenance works. The rates for works are to be calculated on the basis of this schedule. Earlier, the Corporation were executing civic works as per the schedule rates fixed in 2010. But it was last month that the Public Works Department (PWD) revised the schedule rate. The rates for electrical works were increased by 10 percent while the civic work rates were hiked by 15 percent.The Government also made it mandatory for all the local bodies to follow the revised rates for all the works that will be undertaken from September 3, 2011 onwards. The notification in this regard was issued on September 1. Meanwhile the Corporation had only started the primary procedures to implement the civic works under People’s Plan Fund and Plant Fund allotted for the current financial year. It was only in last month they floated the tender for the repair of some major roads in The city. The tender procedures for the construction of drains are also progressing. The Corporation is planning to execute works worth `68 crore during this fiscal by utilising the people’s Plan Fund. The revised schedule rates will affect all these works. If the Corporation is awarding tender as per the revised rates, an additional expense of Rs. 8 crore will be incurred. A top official of the Kochi Corporation admitted that the revised rates had resulted in adding the financial burden of the civic body. “Apart from the revised schedule rates, the State has also decided to increase the wages of the contingency workers too. This increase in the wages will bring an additional liability of Rs. 4.5 crore per year for the Corporation,” the official said.The Pension amount under various schemes also was increased. “This will bring an additional expense 110 lakh per month. Altogether, the recent hikes have further deepened the financial crisis of the Corporation,” the official added.