Sidhu had blamed the Punjab government for scuttling development projects meant for Amritsar, but the state government Friday claimed that there was "no delay" on executing development projects in Amritsar.
Sidhu alleged that crores of rupees meant for Amritsar's development were diverted by the government to other places. He sought a judicial probe into the diversion of funds.
Amritsar is home to the holiest of Sikh shrines 'Harmandar Sahib', popularly known as Golden Temple.
In a statement issued after Sidhu announced his fast-onto-death, the Punjab government said: "Development projects in Amritsar have always been undertaken and pursued with expeditiousness, urgency and speed befitting the immense religious and historical status of the city.
"There has never been any delay at the level of the state government or the local bodies in Amritsar. The only delays have been for reasons beyond the government control such as court interventions or Government of India clearances."
Navjot Sidhu calls off fast after Rajnath, Badal intervene
Amritsar: Amritsar MP Navjot Singh Sidhu Saturday called off his scheduled fast-unto-death at the last minute after BJP president Rajnath Singh and Punjab Chief Minister Parkash Singh Badal intervened regarding the issues of Amritsar raised
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