Karnataka: Govt permits BBMP to raise Rs 1,000 cr loan

Posted By: Pti
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Bangalore, Jul 6: Karnataka Government today accorded permission to Bangalore city corporation to borrow Rs 1,000 crore loan from banks and financial institutions in the wake of it facing a financial crunch.

The state cabinet approved the proposal Bruhat Bengaluru Mahanagara Palike (BBMP) for permission to raise Rs 1,000 crore loan to fund infrastructure projects in the city during 2012-13, Minister for Primary and Secondary Education Vishweshwara Hegde Kageri told reporters here.

The BBMP which is ruled by BJP has already pledged the high rise Utility Building for Rs 1,000 crore loan, a measure that has come under flak by opposition parties.

The Corporation recently presented a budget of Rs 9500 crore and has been pleading the state government for financial assistance.

The cabinet approved implementation of Rs 221 crore Quality Improvement in technical institutions sponsored by the HRD ministry.

The programme will be taken up in en reputed engineering colleges including two run by the government for which the Centre extends 75 per cent assistance and the state contribute 25 per cent cost.

In the wake of criticism over permitting development of 13 horticultural farms in PPP (Public-Private-Participation), the cabinet today decided to cancel it and now go in for Joint Venture to develop all the 410 farms which have 15,732 acres of land, Kageri said.

A special purpose vehicle-- Karnataka State Horticulture Development Agency-- will soon be created for the purpose.

The meeting cleared three railway projects-- Bagalkot-Kudachi estimated to cost Rs 816 crore, Rs 68 crore Kolar-Chikkaballapur gauge conversion and Bidar level crossing with Rs 5.80 crore cost. The state and Railways have an agreement for implementing railway project on cost sharing basis.


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