T’puram: The construction work on the Rs 157.5 crore sewerage project covering Attukal, Kalady and Ambalathara has come to a temporary halt after the Rs 66.63crore National Housing Bank (NHB) loan secured for the project lapsed. The corporation has initiated steps to reclaim the funding through the local self-govt department (LSGD), after which the request will move to the finance department and subsequently to NHB.Corporation secretary M Shafi confirmed that the loan had lapsed and said the process to reclaim the funds had been initiated.LSGD principal secretary’s office had directed officials to reapply for the funding, and the proposal is currently with the finance department, an official close to the matter said.The halt has also left the contractor seeking additional work fronts to keep the labour and machinery already mobilised for the project engaged. However, KWA has been unable to provide further work fronts as the permission for road cutting from the PWD is pending due to a shortfall in the required deposit of Rs 6 lakh, a KWA source said.The temporary halt follows a meeting between KWA and the corporation officials on Sept 3 to discuss the viability of the project and an inspection of the project site the following day. Following the inspection, the corporation asked KWA to fill the trenches excavated for laying sewer pipelines, the official said.The NHB loan was availed in Sept 2024 but lapsed in Feb 2026 after the required work-status report was not communicated to NHB. The corporation came to know about the lapse only in July.Under the funding arrangement, 25% of the project cost has to be met by the corporation. Eligible expenditure is initially incurred from the corporation’s funds and subsequently reimbursed through the NHB loan in three instalments in a 40:40:20 ratio. A 20% mobilisation advance is also available, while individual bills cannot be directly claimed from the NHB loan, the KWA source said.The contractor had already mobilised labour and machinery, and around 1km of sewer pipeline work had been completed. The temporary halt could prolong inconvenience for residents in Attukal, Kalady and Ambalathara, where roads are being excavated for laying pipelines. A prolonged delay could postpone road restoration and affect traffic and access in the areas.The timing is particularly significant for Attukal, where major sewerage works and road restoration were expected to be completed ahead of next year’s Attukal Pongala.The project comprises two packages — the Rs 66.5crore Attukal-Kalady package and the Rs 91crore Attukal-Ambalathara package. Together, they envisage around 44.7km of sewer network and 4,338 connections.
