Deccan Chronicle 19.01.2010

BBMP asked to cough up Rs 30 crore

Jan. 18: Cash-strapped BBMP is all set to become poorer by Rs 30 crore as a legal dispute with one of its contractors, Atlanta Infrastructure Limited, has gone against it.

The dispute relates to a project of the erstwhile BMP to upgrade 21 roads stretching over 71 km in south Bengaluru and the ring road by raising funds through municipal bonds. The work was executed between 1998 and 2000 by Atlanta Infrastructure, which bagged the contract to upgrade the roads to national standards in this part of the city.

But BMP later alleged that the company failed to complete the work within the deadline given causing much inconvenience to the public.

Atlanta, on the other hand, attributed the delay to release of funds for the project by BMP and said it could have done the work much faster if money was put at its disposal sooner. An arbitrator was appointed by the high court to settle the dispute, after the BMP commissioner failed to resolve it amicably although he was given an opportunity to do so within 30 days by the court, say BBMP sources.

Atlanta Infrastructure Limited claimed a compensation of Rs 19.42 crore for losses in overheads and profits and Rs 6.47 crore for loss in productivity as its machinery and equipment had to lie idle while waiting for funds from BMP to upgrade the roads under the project.

After giving ample opportunity to both sides to present their case, the arbitrator ruled in favour of Atlanta, saddling BBMP with a huge amount to be paid as compensation to the company. BBMP was directed to pay the money with an interest of 6 per cent per annum. While BBMP has already paid the first installment of Rs 10 crore, it still has to pay the remaining Rs 20 crore in two more installments, according to former mayor P. R. Ramesh.

“Had BMP been a little careful, public money could have been saved and better work would have been done by the contractor. Its negligence has cost the civic agency heavily,” admit some BBMP sources.

The New Indian Express 08.01.2010

Seven corporations register

BANGALORE: Upon a review of the progress of works and development across the seven city corporations in the state on Thursday, Urban Development Minister Suresh Kumar on Thursday claimed that 75 per cent utilisation had been registered in the Rs 100-crore special grant provision announced in the last budget. The statement came even as the minister took note that with less than three months to go for the close of this financial year, a collective average of 46 per cent only is the property tax collection registered across these cities — Gulbarga, Davanagere, Hubli-Dharwad, Belgaum, Mysore, Mangalore and Bellary. The lowest in the rank are Gulbarga, Mangalore and Bellary — 24 pc, 30 pc and 46 pc collections respectively. The minister said that of the Rs 265 crore released during the year under the Rs 100-crore grant scheme (for each city corporation), Rs 215 crore had been utilised. Being the first year of the scheme, the corporations took time to submit their action plans. The remaining sum would be carried forward to the next year, he said. Belgaum’s action plan was delayed due to the processes related to Assembly byelection, the Legislative Council elections and the legislature session. DOWN * Mangalore city administration is pushing for a modification of the capital value scheme on property tax. * Gulbarga city procures 14 hearse vans for the exclusive use of SC/ST sections. City officials have no answer for what it expects other communities to do. * Bellary yet to appoint a party for third party inspection of the quality of works, but is through with 21 works under the scheme. UP * City corporations like Hubli- Dharwad and Mysore are told to proceed with collection of the principal sum on water taxes pending the government’s decision on waiver of interest. Mysore in particular is asked to come out with an action plan on the measure. * If the Davanagere city corporation has its way, its pigs and piggery will be out. Alternative livelihood for people engaged in piggery is being explored. The pigs will be housed in city’s outskirts. * Mysore upgrades its traffic signalling system under the Rs 100 crore grant.