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Tuesday, February 29, 2000

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Mega projects hanging fire in Karnataka

By S. K. Ramoo

BANGALORE, FEB. 28. Several mega projects in Karnataka, which would have a vital bearing on the State's economy, have all remained non-starters. They include the Cogentrix, Devanahalli International Airport, Bangalore Elevated Rail Transport System (ELRTS) and the Bangalore-Mysore Expressway projects.

Successive governments from the time when Mr. S. Bangarappa was the Chief Minister have been talking about these project proposals and making tall claims about their early completion. But, as they lacked resolve and conviction to pursue the projects, these have all remained only on paper. Projects such as Cogentrix have been caught in the web of bureaucratic and procedural hurdles, including court litigations, and others have not been moving forward mainly because of the lack of perseverance on the part of successive governments.

Although Karnataka is currently facing acute shortage of power, the 1,000-MW Cogentrix project did not take off even after seven years, although it was originally conceived as a ``fast-track'' project. Clearances and approvals from the Union and State Governments and Government agencies took considerably long periods of time to come through. The original promoters of the project, Messrs Cogentrix Energy Inc. withdrew from the project in disgust over the inordinate delays in obtaining clearances, at a time when the Union Power Ministry, finally sanctioned the long-awaited financial counter-guarantee.

Several ministerial colleagues of Mr. Krishna had entertained reservations about the project on the ground that the power generated would be too expensive. The Government promptly constituted an expert committee headed by Mr. Deepak Parekh to study the implications of extending escrow cover to independent power producers, including the Cogentrix project. Its fate now depends on the report of the committee, which was submitted to the Government on Saturday.

The China Light and Power Company, which was to execute the project, has lately teamed up with the Tatas. It has agreed to fall in line with the new tariff conditions imposed by the Union Government. However, there is no change of heart on the part of the local community of Nandikur village, where the project is to be located. The local people, including the fisher folk, and environmental groups active in Dakshin Kannada District, continue to articulate their fierce opposition to it on the ground that it would endanger the delicate eco-system of the region, including the sea coast and lush green forests of the nearby Western Ghats. The National Environmental Engineering Research Institute, Nagpur, in its report on the project's environment impact, has raised several objections and entertained reservations. Neither the Government nor the promoters have so far cared to remove the doubts and apprehensions.

The highly-ambitious Devanahalli International Airport project is sadly back to square one, following the Tatas and their consortium partners abandoning it, after the inordinate delay in obtaining sanctions and attempts made to radically alter the basic structure of the original bid. It is now mooted as a joint venture project, and seven agencies have been short-listed, following global tendering. The selection of the joint sector partner is yet to be finalised. Since all procedures have to be initiated once again, it is likely to take considerable time to re-start, may be not earlier than the year-end. The interests and hopes of exporters, particularly those involved in floriculture, have greatly diminished.

The long-awaited ELRTS project for providing Bangalore with a fast and convenient mode of public transport, is being delayed for some reason or the other. The promoters finalised the feasibility study recently.

Meanwhile, the State Government, which has been collecting a special cess on petrol and diesel from the citizens of Bangalore, have reportedly diverted the massive revenue from the cess to other purposes. Bangaloreans are greatly peeved, as there seem to be no signs of the work on the project starting.

The much-publicised Bangalore-Mysore Expressway project has been hanging fire for considerable time. When completed, it would provide tremendous economic benefits, in addition to cutting down the journey time between Bangalore and Mysore. It has to be seen how far Mr. S. M. Krishna's Government, which recently completed four months in office, will accelerate these four crucial mega project proposals. It has to function all the better and harder to promptly see them through. Successive governments without exception have been guilty of empty rhetoric about the prospect of the early commissioning of these projects.

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