Karnataka cabinet clears 179% rise in Yettinahole project cost

The Cabinet on Thursday approved the revised estimates of Rs 23,251 crore for the Yettinahole drinking water project, a nearly three-time jump since it was first conceived in 2012.

The project aims to draw 24 tmcft of water from the Yettinahole river in Sakleshpur taluk in Hassan district to meet the drinking water demands of Kolar, Chikkaballapur, Tumakuru, Ramanagara and some parts of Bangalore Urban districts.

The BJP was in power when it was first approved ten years ago and the project cost was estimated at Rs 8,323 crore. In 2014, it was revised to Rs 12,912.36 crore after Congress came to power.

“The cost of the project is escalating mainly owing to the high cost of land acquisition under the 2013 Act. The cost of land acquisition has quadrupled, therefore the cost of all projects in the state are seeing revised estimates,” Law Minister J C Madhuswamy said while briefing reporters.

“The state government has identified around 5,860 acres of land spread across Tumakuru and Doddaballapur taluks for building a tank. Since the guidance value of one acre of land in Doddaballapur taluk is around Rs 8 lakh, it is only Rs 2 lakh in Tumakuru taluk. So, the land owners of Tumakuru are seeking equal compensation,” Madhuswamy explained.

Power storage

The Cabinet approved a grid-connected 1,000 MW pumped hydro storage power project at a cost of Rs 4,000 crore. The project will be implemented with private investment.

“This is going to be the state’s first project to store electricity. Using excess solar and wind power produced by the state, we can pump and store water during monsoon and in summer we can use this stored water to produce electricity and use it,” Madhuswamy explained.

In another decision, the Cabinet approved a subsidy of Rs 8,014 crore to all five Escoms to improve their financial health. The total dues are Rs 15,270 crore which has been accumulated since 2003, Madhuswamy said.

The Cabinet also approved the release of Rs 100 crore for the purchase of 921 AC electric buses by the BMTC under the FAME scheme.

Also, the Cabinet cleared the development of multistoried 1,000-bed hostels in Belagavi, Mangaluru, Hubballi-Dharwad and Kalaburagi at an estimated cost of Rs 458 crore.

BULLET BOX

Other decisions

* Release 42 prisoners ahead of Republic Day for good behaviour.

* Rs 138 crore approved for KHB’s commercial complex at Suryanagar Layout.

* Withdrawal of 39 criminal cases filed against various persons and organisations.

* HC permission to be sought to withdraw two cases involving people’s representatives.

* Rs 88 crore for the new Bengaluru North University campus at Amaravathi, Shidlaghatta.