Bengaluru

Civic body has to bear 50% of ₹6,000 cr. sanctioned for projects

The Government has cleared a slew of infrastructure projects under the Chief Minister’s Amrut Nagarothana scheme

The Government has cleared a slew of infrastructure projects under the Chief Minister’s Amrut Nagarothana scheme

The State Government will bear only 50% of the ₹6,000 crore of funds it had cleared towards a slew of infrastructure projects for Bengaluru under the Chief Minister’s Amrut Nagarothana scheme over a period of three years.

For the remaining ₹3,000 crore, the civic body has been asked to seek a loan for 40% or ₹2,400 crore from the Karnataka Water and Sanitation Pooled Fund Trust, under the Karnataka Urban Infrastructure Development and Finance Corporation. It will have to raise the remaining 10% (₹600 crore) from its own resources.

The State Cabinet, earlier this month, had cleared ₹6,000 crore for projects aimed at decongesting traffic at Hebbal junction, road widening, construction of skywalks, etc. Initially, the Cabinet stated that the Government would release ₹2,000 crore as special grants each year (for three years) to the BBMP.

However, the Chief Minister himself has, on various occasions, claimed that all was not well with the State’s financial condition. An order has been issued by the Department of Urban Development on the revised funding mechanism.

Mounting bills

While the Government’s commitment has been halved, the order has added to the BBMP’s financial burden. Apart from mounting pending bills of ₹3,229 crore, the Government already has to sanction ₹9,000 crore for various ongoing works. With property tax as its major revenue source, it will be a challenge for the financially starved civic body to not just raise funds, but also take on another loan.

Sources claimed that the State Government has approved this mega scheme with an eye on polls to the civic body expected some time this year. The civic body has not had an elected council since September 2020. The Supreme Court is hearing a case pertaining to the civic polls. This being the case, it is to be seen if these ambitious projects, for which an action plan will have to be submitted, will be implemented on ground or if they will remain on paper.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | May 18, 2022 4:59:26 am | https://www.thehindu.com/news/cities/bangalore/civic-body-has-to-bear-50-of-6000-cr-sanctioned-for-projects/article38294670.ece