Imphal: The ambitious Imphal Ring Road (IRR) Project in Manipur has hit a roadblock after the Asian Development Bank (ADB) reportedly withheld fund disbursement, pushing the state government into a difficult financial situation.
Sources said the ADB is reconsidering its investment in the project following alleged irregularities and poor execution of the ADB-funded Imphal-Kangchup-Tamenglong Road (IKTR) Project. The funding uncertainty has stalled progress and left the government burdened with pending contractor payments.
The 51.23-km Imphal Ring Road project, estimated to cost around Rs 1,766 crore, aims to reduce traffic congestion in Imphal by creating an alternative route around the city. The project covers parts of Imphal East and Imphal West districts and was targeted for completion by 2027.
According to sources, the ADB has not released any funds for the project so far, with officials suspecting that concerns over the IKTR project may have influenced the lender’s decision. The ADB had earlier provided around Rs 1,400 crore for the IKTR road, but the project remains incomplete despite the substantial investment.
Sources claimed that nearly Rs 300 crore more may be required to complete the IKTR project, an expense that would have to be borne by the Manipur government. However, the state’s ongoing financial constraints have made it difficult to arrange the additional funds.
The situation has reportedly been worsened by procedural issues in the IRR project. Normally, tenders and work orders for major infrastructure projects are issued after loan agreements are initiated or finalised. However, in the case of the Imphal Ring Road, tenders were floated and work orders issued before loan negotiations began and before the ADB approved the proposed alignment.
As a result, contractors started work while the government remained unable to clear all pending payments. Around Rs 50 crore has already been released from the state exchequer towards contractor payments, but an estimated Rs 30 crore in liabilities is still pending.
With ADB funding uncertain, the state government is now exploring other financial institutions to support the project. Another major challenge is land acquisition, for which the government has already spent around Rs 30 crore as compensation.
The total land acquisition cost is estimated at nearly Rs 100 crore, with about Rs 70 crore reportedly earmarked by the state. However, the compensation process remains stalled until clarity emerges over the future of the Imphal Ring Road project.