I thought these things happened only in Assam.
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Taj Corridor's Victim: $1 b

Funds to develop the districts of Mathura, Ferozabad and Agra were not utilised due to the controversy

By  Naresh Minocha
New Delhi


The scheme would have enabled the region's people to improve quality of life, and live in harmony with their cultural environment The scam underlying the controversial Rs 175-crore Taj Heritage Corridor project has put environmental protection of Taj Mahal on the national agenda.

The Supreme Court's strictures about the project and the resulting cbi probe into the approval of the project landed former UP Chief Minister Mayawati and senior retired and serving ias officials in the dock.

Amid this din, a much bigger scam has virtually gone unnoticed. This is about the loss of an opportunity to receive $1 billion (Rs 4,377 crore) international funding for the protection of the Taj and for the development of Agra, Mathura and Ferozabad districts that are collectively referred to as the Taj Trapezium.

It is sheer lethargy and mishandling by politicians and bureaucrats that let this massive loan slip out of the country's hands. And the story about the abortion of multi-sector project loan for Taj Trapezium has now been recorded by prospective lender, Asian Development Bank (ADB), in a report published in May 2005.

The Taj Mahal Environmental Improvements Project (formerly Environmental Improvement and Sustainable Development for Agra-Mathura-Ferozabad Trapezium) was first mentioned by ADB in April 2001 in its list of Indian projects with initial loan of $190 million. The project did not move beyond the listing.

The scheme would have brought about a sea change in the entire region and would have enabled its entire eight million population to improve their quality of life, and live and work in harmony with their cultural and natural environment. In December 1995, ADB arranged a grant to fund studies on air pollution, solid waste management, water and power shortages, traffic congestion, floating population, child labour and other problems in the Taj Trapezium. The objective of all this technical assistance was to generate inputs that would go into preparing $1 billion multi-sector project for the region.

In its technical assistance completion report (TACP) released a few days ago, ADB has pointed out that the proposed project had a "high profile because of its focus on the home of the Taj Mahal, which in turn was subject to directions of the Supreme Court of India as a result of public interest litigations on environmental protection".

The report notes that the choice of the Union ministry of finance as the project execution agency appeared to be inappropriate. The ministry was unable to fulfill the role of inter-sectoral coordination.

Experts who prepared the TACP found "no record" of the meetings of the central steering committee and four sub-committees that were constituted to implement technical assistance project. The UP government was not represented on any of these committees. This is in spite of the fact that participation of both state and local governments was required for several components of the proposed $1 billion project. There is no record of the review missions having visited any project sites.

The consultant hired to prepare technical assistance reports could not schedule a presentation requested by the state government, further delaying the processing of loan proposal. The consultant's final report did not address the terms of reference related to project formulation.

TACP says: "Cost estimates and financial analyses were inadequate in detail. Institutional analyses were not done. Implementation arrangements and schedules were not sufficiently detailed. Environmental and social assessments were not adequate. As a result, considerable work had to be done and redone during loan processing for an urban improvements project�. Ultimately, the proposed project lost ownership both in ADB (with its reorganisation) and in the government of UP (with political changes), and the loan was never negotiated."

The proposed project had five components: public support for environmental improvements; Taj Mahal Environment Improvements including air pollution control, water supply, sanitation and drainage; heritage restoration and conservation including development of a cultural heritage district; poverty alleviation and implementation assistance.

The project also provided for institutional reforms such as merger of urban local bodies, cost recovery for urban services and promoting public-private partnership in municipal services.

The consultants for the technical assistance project were New Delhi-based teri that worked in association with Electro Watt Engineering Limited of Switzerland and aea Technology of the UK.


June 18 , 2005

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