The Hindu : Dharam denies charge on BMIC project

Online edition of India's National Newspaper
Tuesday, Mar 25, 2003

Southern States

Southern States - Karnataka-Bangalore

Dharam denies charge on BMIC project

By Our Special Correspondent

Bangalore March 24. The Public Works Minister Dharam Singh, today denied in the Legislative Assembly the allegation that the Government was going out of its way to help Nandi Infrastructure Corridor Enterprises Ltd. (NICE). The firm is executing the Bangalore-Mysore Infrastructure Corridor project.

Mr. Singh said the project was a unique one and had to be given concessions, but the Government had not done so. The Centre had issued a circular in 1997-98 to the effect that State governments should render all assistance to mega projects that come up in their State.

The minister, who was replying to a question from the BJP member, Suresh Kumar, said the MoU for the project was signed by the then Government with the Kalyani Group in February 1995, and the agreement was executed in April 1997. Of the 2,605 acres of land needed for the first stage of the project, the final notification for acquisition of 166 acres was issued last month and another notification for 475 acres was issued this month.

When his attention was drawn to the plight of farmers who had been dispossessed of land, Mr. Singh said the compensation payable was estimated at Rs. 450 crore. The company had obtained Rs. 150 crore from ICICI Bank and paid Rs. 10 crore. It would make payments as and when final notifications were issued.

Not satisfied with the reply, Mr. Kumar demanded the withdrawal of the preliminary notification except to the extent of requirement. He also demanded a White Paper on the matter, but this was rejected by Mr. Singh who said there was no question of the Government yielding on the project. This led to a walkout by Mr. Kumar.

In reply to a question by the Leader of the Opposition Jagadish Shettar, the minister said about 2000 km of State highways were being upgraded and rehabilitated in a phased manner under a Rs. 2,030-crore World Bank-assisted scheme. Of the 41 packages involved, work had been started on 24 packages and tendering was in progress on five. The other packages would be ready by October. All the works would be completed by December 2006.

Denying that the quality of work being done was poor, Mr. Singh said there were consultants to inspect the works for quality.

Apart from the World Bank-aided project, about 7,600 km of roads would be resurfaced and repaired with Rs. 150-crore assistance form Hudco, he said.

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