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Rs. 558-cr. project for infrastructure development in north Karnataka

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The Hindu      22.12.2010

Rs. 558-cr. project for infrastructure development in north Karnataka

Nagesh Prabhu
Government signs agreement with ADB for second phase
— FILE PHOTO

FOR DEVELOPMENT:Drainage work will be taken up in Gulbarga, Gangavati and Badami under the KUSIP project.

BANGALORE: The State Government has signed a $ 123 million (about Rs. 558 crore) loan agreement with the Asian Development Bank (ADB) for implementation of the second phase of the Karnataka Urban Sector Investment Programme (KUSIP) aimed at development of infrastructure in north Karnataka towns/cities.

The ADB and the Government signed the pact in New Delhi on Thursday covering 22 towns of north Karnataka.

The eight-year project was launched in 2008 with an investment of Rs. 1,980 crore in 25 towns/cities, officials in the Karnataka Urban Infrastructure Development and Finance Corporation told The Hindu here.

The agreement for the first phase with a loan amount of $ 33 million was signed in January 2008, and works have been taken up in three towns — Haveri, Hospet and Raichur.

The objectives of the project are to improve the environmental conditions of the towns/cities; reduce poverty in low-income areas through access to basic urban services; and improving the service delivery capacities of urban local bodies through institutional development.

“The second phase of the programme will assist the participating urban local bodies (ULBs) in rehabilitating existing and construction of new urban infrastructure facilities. It will also support the institutional reforms for the participating urban local bodies,” the officials said.

Based on the outcomes of the report of the High Power Committee for Redressal of Regional Imbalances, the Government conceived the KUSIP in its bid to boost economic growth in a region that has traditionally lagged behind. The 25 towns were selected based on criteria such as district headquarters of new districts; towns with above 50,000 population; and towns with tourism importance.

In the second phase, water supply work would be taken up in Yadgir, Bellary, Basavakalyan, Gokak, Davangere, Bidar, Shahabad, Nippani and Ilkal towns, drainage work in Gulbarga, Gangavati and Badami, sewerage work in Ranebennur and Jamkhandi, district information centres in Bidar, Raichur and Chamarajanagar, sewerage and urban drainage work in Bijapur (two packages), fire station and staff quarters at Dharwad and Ranebennur, construction of sewerage treatment plants in Hubli, and slum improvement works in various towns, the officials said.