• PAGE ONE
• INDEX
• HOME

Karnataka mega core projects to get more sops

Madhumathi D.S.

BANGALORE, July 11

MEGA infrastructure projects coming up in Karnataka are slated to get a bounty in the form of exemption from urban levies and cesses under a forthcoming amendment to the Karnataka Town & Country Planning Act, 1961.

An immediate beneficiary of its enactment will be the Kalyani-promoted Bangalore Mysore Infrastructure Corridor Project (BMICP).

At least, two other private promoted ventures that may also be eligible for the exemption are the international airport at Devanahalli and the city's elevated light rail project that is being promoted by the UB consortium.

The waiver for BMICP, for one, can easily amount to Rs 300-500 crore, sources said. This project is currently awaiting MoEF's green clearance.

BMICP's promoter consortium, Nandi Infrastructure Corridor Enterprise (NICE) Ltd, has sought the waivers on the ground that it is developing some 20,000 acres of land on its own for a 111-km toll road and five abutting townships.

NICE officials said concessions for the Rs 2000-crore project were sought and conceded in the 1997 initial agreement with the Government.

A new Section 18 A added to the Act contains the exemption clause for a clutch of cesses towards betterment, BDA, change of land use, Cauvery water and Ring Road among others. The Bill had been returned by the governor last year for clarifications.

According to officials, exemptions under the amendment will apply only to key proposals which have been declared by the Government as infrastructure projects. The revenue would, however, accrue from third and eventual buyers downstream.