Fund crunch likely to delay rigid pavement construction
Source: The Sangai Express

Imphal, June 14 2026: The Manipur Urban Road, Drainage and Asset Management Improvement Project (MURDAMIP), under Smart City initiative, is facing serious setbacks and facing a possible suspension due to prolonged delays in the release of funds, said a highly reliable source.

The project, being implemented with loan assistance from the Asian Infrastructure Investment Bank (AIIB), aims to develop an all-weather, climate-resilient and low-maintenance urban concrete road network within the Greater Imphal area.

The project covers a total road length of 547.281 Km and the total project cost is Rs 3,647.23 crore, of which Rs 2,896.02 crore is financed through an AIIB loan.

Fund crunch likely to delay rigid pavement construction

The works are being implemented through four EPC (Engineering, Procurement and Construction) contract packages.

The project has a 3-year construction period and a 5-year defect liability period.

However, the works under Package 1, Package 2, Package 3 and Package 4-being executed by joint ventures including DRAIPL-KSPIL (JV), BSCPL-KSPIL (JV) and AMRIL-IRCON (JV)-have been slowed down with the project facing a possible suspension due to prolonged delays in the release of payments by authorities concerned, said the source.

Package 1 pertains to construction of 172.858 Km rigid pavement and lined drain of selected roads under Imphal West Division, and is being executed by a joint venture of DRAIPL-KSPIL.

Package 2 covers 141.032 Km stretch of roads under Imphal East Division and is being executed by BSCPL-KSPIL (JV).

Package 3 covers 122.209 Km stretch of roads under Imphal East Division-2 and Package 4 covers 111.182 Km stretch under Highway South Division (Imphal West).

These packages are being executed by AMRIL-IRCON (JV).

However, despite substantial progress achieved on the ground under challenging conditions, the contractors have been experiencing severe financial stress due to non-payment of certified bills and the absence of adequate fund flow, said the source.

"The situation has reached a critical stage where the executing agencies are finding it increasingly difficult to sustain construction activities, mobilize resources, procure materials, and meet obligations towards workers, vendors, and subcontractors," said the source who has knowledge about the project.

Facing fund crunch, some agencies have already slowed down their activities.

Others may soon be compelled to suspend operations if the payment situation remains unresolved, added the source.

Further delay in the release of funds may significantly affect the execution of the project, projected timelines, and inconvenience the public, particularly in areas where road and drainage works are currently under execution, said the source.

The project is funded under an AIIB-assisted programme, wherein timely availability of funds from the State Government is essential to ensure uninterrupted execution.

However, delays in fund allocation and payment processing have adversely impacted the progress of works despite repeated requests and follow-ups by the executing agencies, the source stressed.

If the works get interrupted or delayed for long, partially completed stretches may deteriorate, causing inconvenience to commuters, residents, and local businesses, added the source.

Significantly, the execution of the project had earlier faced several issues including the absence of a Project Monitoring Unit (PMU) .

Lack of proper monitoring and cracks appearing on the newly constructed pavement had raised serious concerns about the quality of the work.

Stretches of newly paved roads at Wangkhei were reconstructed to meet required standards.

In addition, protruding and elevated slabs of pavement had raised safety concerns and caused motor accidents.

The rigid pavement and drainage works are of immense importance to the city.

Any interruption at this stage could delay the intended benefits to the public.

In the larger public interest, it is imperative that the authorities concerned and the Government take immediate steps to resolve the funding and payment issues, said the source.

Timely release of outstanding dues and provision of adequate funds will help ensure uninterrupted execution and successful completion of this vital infrastructure project for the people of Manipur, added the source.