Much drummed up Public Private Partnership Model (PPP) is calling for serious introspection need when Siddhi Group of companies in Ahmedabad has not honoured the big promises they made while already availing huge benefits for them in return.
In a lesson of sort to the administrators and the political party pushing for it – in this case, BJP, Siddhi Group who had committed itself to build Jagatpur overbridge on PPP model by sharing 25 per cent of the cost and availing largesse from the establishment in return has said that they will not be able to do so.
As per the agreement, the Siddhi group had to pay at least Rs 18 to 20 crores to the Ahmedabad Municipal Corporation, whereas only Rs 1 crores have been paid. Cheques are given for the remaining amount. Mukesh Patel, the director of Siddhi Group has informed that their financial conditions are not strong enough to bear the committed 25 per cent.
What is more shocking than the refusal of the company to pay is they have tried to negotiate by saying that if their pending schemes lying with Auda are cleared expeditiously, they might pay the committed amount.
The refusal to honour commitment is a direct loss the exchequer to the tune of at least Rs.10 crores. Ahmedabad Municipal Corporation has provided various basic infra facilities to the Siddhi Group schemes in anticipation of the share in Jagatpur over bridge cost. It remains to be ascertained if any penalty clause had been inseted in the agreement for any eventuality such as the one which took place. Also, it must be considered a big failure on the part of the negotiating officers who acted on behalf of the city of Ahmedabad.
