State to seek increase in Central share

State to seek increase in Central share

Urban Development Department wants CIP to touch Rs 65,000 cr

The State Government signed a memorandum of agreement with the Centre for the Capital Investment Plan (CIP) of Rs 22,536 crore for Bangalore city under JNNURM. Now, the Urban Development Department aims at increasing the CIP to Rs 65,000 crore.
The proposal will soon reach the Centre. If the Centre approves the revised CIP, the State gets 35 per cent of the total funds from the Centre.

JNNURM, a seven-year programme, was launched in 2005 with twin objectives of improving infrastructure facilities in select cities and encouraging people’s participation in governance.

Sharing the cost

The Centre, the State Government and the local body share cost of the projects, approved by the Centre, at the rate of 35 per cent, 15 per cent and 50 per cent respectively. So far the technical team at the Centre had approved 53 projects for Bangalore with the total investment of Rs 3,140 crore.

According to a report on status of the JNNURM works in Karnataka, prepared by the Urban Development Department, the Government defends the demand for hike in the CIP citing increase in areas under BBMP.

When the Government entered into an agreement with the Centre in 2006, the erstwhile BMP was only 225 sqkms. It was expanded up to 830 sqkms after seven CMCs, one TMC and 110 villages were brought under the purview of the BBMP in January, 2007.

The first election to BBMP was recently held and now, the Government wants more funds to take up works in the newly added areas.

The Centre has approved altogether 66 projects for the State. Of them 53 for Bangalore and 13 for Mysore. As many as 10 projects have been completed and the rest are at various stages. The status report says the Centre’s total share in projects so far approved is Rs 2,103 crore, of which Rs 818.06 crore had been released so far.
The State Government released Rs 302.76 cr and the respective local bodies contributed Rs 500.78 cr. Besides, the State has sent a proposal of 17 projects with the total investment of Rs 1,553 crore to the Centre.