NEW LEASE OF LIFE: The New Government Electric Factory in Bangalore — Photo: K. Murali Kumar

BANGALORE: The State Government on Thursday decided to reverse its earlier decision to close down the New Government Electric Factory (NGEF). It will file an application before the Karnataka High Court seeking time for submission of fresh proposals to revive the industry and suspend the process of winding up the unit.

Briefing presspersons after the State Cabinet meeting, Information Minister B. Shivaram said the Government sees great opportunity in selling 53.91 acres of NGEF land at a cost of Rs. 1.96 crore an acre to Bangalore Mass Rapid Transit Ltd. (for the metro rail project), Karnataka State Road Transport Corporation, and Bangalore Metropolitan Transport Corporation. This will bring in Rs. 105.6 crores. After meeting the NGEF's commitments to banks (Rs. 68 crores), nearly Rs. 38 crores will be available.

Kaigarika Vikasa

The Government, which has allocated Rs. 25 crores for Kaigarika Vikasa in the current budget, will implement the scheme in 39 most backward taluks identified by the D.M. Nanjundappa Committee for Removal of Regional Imbalances. An Empowered Committee will be constituted to implement the scheme, for which an additional loan of Rs. 25 crores will be taken from the National Bank for Agriculture and Rural Development, Mr. Shivaram said.

The scheme is expected to generate 1.5 lakh jobs and create capital generation potential of Rs. 2,400 crores. Concessions and incentives will be provided to those coming forward to set up industries in the 39 taluks.

The Cabinet approved a decision to allow the five electricity supply companies to sign agreements with the Rs. 4,299-crore Nagarjuna Power Corporation Ltd. in Mangalore for supply of power at Rs. 2.50 a unit.

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