The State Cabinet on Wednesday approved a grant of ₹8,037.87 crore for development works in the city under the Chief Minister’s new Nava Bengaluru Scheme.
The funds will be released over the next three years and the works will be executed by the Bruhat Bengaluru Mahanagara Palike (BBMP). Nearly 40% of the total grant is for road works while the rest will go towards lake development, solid waste management, land acquisition, and various infrastructure projects.
Of the ₹8,037.87 crore, Chief Minister H.D. Kumaraswamy had announced an allocation of ₹2,500 crore in the Budget presented in July 2018 for the 2018-19 fiscal. A total of ₹2,200 crore will now be allotted to the BBMP.
The State government has also committed to allocate ₹3,606.12 crore and ₹2,231.75 crore over the next two years to the BBMP. This is in line with the Siddaramaiah-led government approving an aid of ₹7,300 crore for works in 2016-17 and 2017-18.
White-topping and roads a priority
The city’s infrastructure is set to get a shot in the arm with the Cabinet approving a grant of ₹8,037.87 crore for development works under the Chief Minister’s Nava Bengaluru Scheme. The grant is for three years from 2018-19 to 2020-21.
Road works, including white-topping, have receiving the highest allocation of funds. White-topping gets 15% of the funds (₹1,260 crore) while a little over 13% (₹1,069.10 crore) has been allocated for grade separators. However, specifics of the roads and grade separators to be taken up for development were not available.
There is also no mention of TenderSURE roads, a project that the previous government had announced it would expand.
Reconstruction of the Stormwater Drain (SWD) network, under way for over three years, has received a boost with a grant of ₹1,576.91 crore. In comparison, lake development and rejuvenation has been allocated only ₹326 crore.
Elevated corridors, PRR not included
Notably, the ₹8,037.87 crore grant does not cover the ambitious network of elevated corridors, which are estimated to cost ₹25,000 crore and to be taken up by the Karnataka Road Development Corporation Ltd. (KRDCL) under the Public Works Department, and the Peripheral Ring Road (PRR), which is estimated to cost ₹17,000 crore to be taken up by the Bangalore Development Authority.
Urban expert and former member of the BBMP Restructuring Committee V. Ravichandar said that funding for these two massive projects will need separate Cabinet decisions. “The government may have to constitute a Special Purpose Vehicle to oversee implementation of these projects, apart from ways to recover part of the investment, either by introducing toll or vehicle cess,” he explained.
‘What happened to earlier funds?’
Over the next two years, the State government will allocate ₹3,606.12 crore and ₹2,231.75 crore to the civic body. This is in line with the Siddaramaiah-led government approving an aid of ₹7,300 crore for works in 2016-17 and 2017-18. The decision to grant aid to the city over multiple fiscals was taken in 2016, as most projects had long-term timelines.
However, even after a year of completion of the two-year period, nearly ₹1,000 crore of the ₹7,300 crore is yet to be spent, sources said.
“There is no data and information on how the earlier fund of ₹7,300 crore under Nagarothana Scheme was spent. This new grant is almost equal to the entire current annual budget of the BBMP. The State government should ensure that the BBMP becomes a self-sufficient local body, apart from showcasing what has been done with the ₹7,300 crore grant,” said Sapna Karim, head, Civic Participation, Janaagraha Centre for Citizenship and Democracy.
Other experts, too, have expressed worry over the dependency of the civic body on the State government for funds.
Urban expert and former member of the BBMP Restructuring Committee V. Ravichandar said the State government should release a white paper on the ₹7,300 crore grant. “What were the lessons learnt? Did the government figure out better ways to structure the new grant?” He sought to know if the grant comes with the ‘ring fence’ clause, where it cannot be diverted and has to be spent on works / projects it has been earmarked for. “Otherwise, it will all go into a leaky bucket, with the funds going towards repaying interest on loans and clearing pending bills,” he said.
The grants also showed that the State government was ‘calling the shots on the city’s development’, which was a sign of a dysfunctional BBMP, said Mr. Ravichandar. “Ideally, the government must link the grants to reforms that should be in place, such as bringing in greater accountability and improving resource mobilisation,” he added.
Ms. Karim maintained that it is a matter of concern that the BBMP’s dependence on the State government will only increase. In the current year, the dependence on State grants has marginally come down and property tax collection trends are also positive, indicating a movement towards self-sufficiency. “From the citizens’ perspective, it may not matter as long as work gets executed and there are visible changes; but, it is not good for the BBMP in the long run,” she said.
