Opinion | JPNIC: From darkness to light

The present reality of JPNIC is that Lucknow is set to get a centre that will strengthen the city’s economic and cultural identity without increasing the burden on the public.

Written by Prem Kant Tiwari

The Jai Prakash Narayan International Centre (JPNIC), located in Gomti Nagar, Lucknow, has for years stood as an incomplete structure that the city sees every day but cannot put to use. During the Samajwadi Party regime, the project, named after Loknayak Jai Prakash Narayan, became a dark saga of public money being squandered, political conspiracy and administrative negligence, with no end in sight. Now, under the Yogi government, the Lucknow Development Authority (LDA) has paved the way for its operation through a new model, bringing the earlier arrangement to an end. This has strengthened the possibility that the centre may finally see better days.

Questions Raised by the Extraordinary Cost Escalation

At the same time, a major question remains: what lessons should we draw from a building that has stood like a white elephant for so long? Let us begin with the cost. In 2013, the estimated cost of the project was pegged at ₹265.50 crore. Three years later, by 2016, the figure had risen to ₹864.99 crore, an increase of nearly 226 per cent. Some cost escalation is not unusual in any major project, but an increase that takes the cost to nearly three times the original estimate is a significant deviation. The irony is that despite such a massive expenditure from public funds, the project remained incomplete. In other words, the public paid the full price but received only an unfinished building in return. The reasons behind the cost escalation are equally startling. 

One major factor was the inclusion of a large number of non-scheduled items. Since government Schedule of Rates were not available for these items, market rates were adopted, leading to a substantial increase in expenditure. Transparent rate-setting mechanisms are established for government construction precisely to prevent arbitrary pricing. When these mechanisms are bypassed, the justification of market rates can often become another name for a free hand in spending. More serious still is the fact that no separate approval was obtained for the cost escalation. Air-conditioning work was also undertaken beyond the originally approved scope. The sanctioned cost of the air-conditioning plant was ₹32 crore, but it was subsequently increased to ₹42 crore. Facilities such as a rooftop swimming pool, gym and cafeteria were also built without approval. Setting rules and procedures aside in this manner makes a mockery of the entire framework of accountability.

An Arbitrary Operating Arrangement

Let us now turn to the operating arrangement. The very composition of the society constituted to run JPNIC raised questions. Non-governmental and family members were made lifetime and founder members. The list included former Chief Minister Akhilesh Yadav, his wife and MP Dimple Yadav, former Chief Minister’s private secretary Gajendra Singh, Samajwadi Party spokesperson and MLA Rajendra Chaudhary, MP Dharmendra Yadav, Anju Narayan, Wasif Hasan and Anupama Prakash.

Most significantly, society members were to enjoy the centre’s facilities free of charge. In effect, a facility built with public money was to be made available free of cost for the benefit of a private circle. The fundamental question is: who has the first right over public property? The society has now been dissolved, and responsibility for the project’s maintenance and operation has been entrusted to the Lucknow Development Authority. This is a step in the right direction, as a public asset should appropriately remain under the control of an accountable public institution.

The Difference Between the Old and New Models

A comparison of the old and new models is particularly revealing, as it clearly brings out the difference between the two arrangements. Under the earlier system, M/s Fortuna Foundation Engineers and Construction Private Limited was selected to operate the centre. Under the agreement, the authority was required to spend approximately ₹150 crore to make the centre operational. Electricity expenses were also to be borne by the LDA. The most worrying provision was that whenever and to whatever extent Fortuna deemed necessary, the LDA or the JPNIC Society would have to undertake the associated work or bear the expenditure. This amounted to a blank cheque, with the public institution bearing the entire risk while the private party stood to benefit. In return, Fortuna was proposed to receive ₹3.15 crore annually or 18 per cent of the total revenue, whichever was higher. In other words, the authority would make the investment, bear the expenditure and pay the private operator.

The new arrangement reverses this structure. Through a global tender, the Lucknow Development Authority has selected a consortium comprising Vrindavan Bottlers and Rockwood Hotels. The terms are different this time. The consortium will have to make an advance payment of ₹10.11 crore to the LDA and deposit ₹25 crore as a performance guarantee. In addition, it will have to pay ₹6 crore annually, with a 5 percent increase every year. The consortium itself will also have to invest approximately ₹150 crore within two years to make the project operational.

Where the burden of investment earlier fell on the public exchequer, that responsibility now rests with the private party. The performance guarantee provides financial assurance that the operator has a tangible incentive to honour the contract. No government funds will now be used for the remaining project work or its maintenance in any manner. This marks a fundamental shift from the previous arrangement.

Government to Operate the JP Museum

Another aspect deserves attention. The consortium will operate the hotel, convention centre, auditorium, parking facilities and sports facilities. However, the rights to operate and maintain the Jai Prakash Narayan Museum within the complex will remain with the LDA or the government. The authority and the state government will be able to use the museum for up to 50 days a year without any charge. This division of responsibilities appears sensible. Commercial activities should remain in commercial hands, while public control should be retained over the section associated with the memory and legacy of Loknayak Jai Prakash Narayan. After all, this centre is not merely a hotel or an auditorium. It bears the name of a personality who went beyond the politics of power to lead a mass movement.

The Biggest Lesson from the Project

The biggest lesson from this project transcends politics. Regardless of which government is in power, whenever work on public projects begins without the requisite approvals, rates are fixed arbitrarily and the benefits of facilities are restricted to a select few, the taxpayer ultimately bears the cost. It is therefore essential that the procedural reforms introduced now become a permanent part of the institutional framework. JPNIC’s past serves as a warning, while its present offers an opportunity. The present reality is that Lucknow is set to get a centre that will strengthen the city’s economic and cultural identity without increasing the burden on the public.

(The authore is a Senior Journalist and Former Newsreader at All India Radio, Lucknow. The views expressed in this article are those of the author and do not necessarily reflect those of Zee News.)

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