Bhubaneswar, Jan. 1: With the Japan International Co-operation Agency (Jica) not extending financial support for development of Bhubaneswar as a smart city, the planned projects are in a quandary.

The Bhubaneswar Smart City Limited (BSCL) will now have to look for other sources for funding the projects.

The first phase of the smart city project being implemented for Rs 250 crore over 12 acres has already been approved by the state government. The government, seeing Jica's dilly-dallying attitude on financing the projects, has asked BSCL to look at alternate sources. Sources said the BSCL had been asked to seek financial support from Asian Development Bank.

The sources said that the state government had been banking on Jica for implementing the Bhubaneswar railway station multi-modal hub project. However, with JICA not responding to the financial demands of the projects, the Asian Development Bank has now emerged as a potential financier for the projects.

Bhubaneswar Development Authority (BDA) vice-chairman and BSCL MD Krishan Kumar said the utility would shortly form a special purpose vehicle for the railway station multi-modal hub project. He said the ambitious project would include efficient multi-level car parking, business plaza, iconic tower with retail office, hotel, convention hall, residential space, renovated Ashoka Market, city bus terminal, night shelter for the homeless, street vendor rehabilitation facilities and public amenities. Kumar said the project management consultants would be engaged once the special purpose vehicle that would be a subsidiary of BDA, was formed.

With the uncertainty over funding, the future of the project, the work on which is going on at a snail's place, seems uncertain, said a BDA official. Sources said the BDA had agreed to bear 15 per cent of the project cost.

The Bhubaneswar Smart City Limited had received an assurance of getting Rs 2,000 crore from public private partnership. But, the entity is yet to receive any funding for its projects. The initial funding for the project would be borne out of the comprehensive development plan infrastructure development fund of the BDA now. Besides, funds can also be tapped from the smart city mission fund.

However, town planner A.K. Swain said BSCL should widen its search for financiers for funding the projects that are aimed at making Bhubaneswar a smart city.

"Since Bhubaneswar's plans for the smart city project shows promise, there should be no issue in getting funds," he said.