The Hindu 30.10.2013
Rs. 3,250-crore revolving fund proposed to grant loans to ULBs
Loans for development work to be given at 6 per cent rate of interest
The State government has proposed to set up a Rs.
3,250-crore revolving fund to grant loans to urban local bodies (ULBs),
including city corporations, at six per cent rate of interest to take up
development work.
Urban Development Minister Vinay
Kumar Sorake told presspersons here on Tuesday that the objective of the
fund was to grant loans to urban local bodies that have been facing
severe financial constraints and have not been able to provide basic
amenities to citizens. The loan amount should be utilised for providing
basic facilities such as drinking water, solid waste management, road
connectivity, land acquisition and underground drainage.
The
department officials have been told to prepare a note to be placed
before the State Cabinet for approval. The department has received funds
from the Union government and international funding agencies and these
funds will be given to urban local bodies facing a funds crunch, he
said.
Probe ordered
Mr.
Sorake said that he has issued directions to the Regional Commissioner
to investigate the alleged irregularities in the implementation of a
Kundamestri drinking water scheme in Kodagu district and submit a
report.
The project to pump water from Kundamestri to
augment the water level at the Kootuhole reservoir (which caters to
most of the drinking water needs of Madikeri city) was initially
estimated at Rs. 7 crore and later revised to Rs. 23 crore. Now, the
project cost is estimated at Rs. 80 crore.
Despite
spending a huge amount, there had been no physical progress under the
scheme. The department would initiate action against those who
misappropriated funds on the receipt of inquiry report, he said.
The
department would explore the possibilities of lifting water from the
Berthi reservoir to supply drinking water to Madikeri, he said.
Fresh proposal
Mr.
Sorake said that the government has submitted proposals worth Rs. 5,200
crore to the Centre for the second phase of work under Jawaharlal Nehru
Urban Renewal Mission (JNNURM) in Bangalore and Mysore cities.
Admitting
irregularities in the execution of work in the first phase in these two
cities, he said that the government was yet to decide whether to order a
probe into the alleged irregularities.
Recently, the
State received 2,100 buses of the 10,000 buses planned for other select
cities across the country. More tier-II and tier-III cities would be
brought under Urban Infrastructure Development Scheme for Small and
Medium Towns (UIDSSMT), he said.
A sum of Rs. 1,000
crore has been reserved in the State Budget for the launch of the third
phase of the Chief Minister’s Nagarotthana scheme, Mr. Sorake said.
