GULBARGA: The State Government, in a major policy decision, has decided to allow Karnataka Neeravari Nigam Ltd. (KNNL) and Cauvery Neeravari Nigam Ltd. (CNNL) to substantially increasing the borrowing limit to ensure that there was no shortage of resources for funding the ongoing projects and also the new ones planned by them.

Disclosing this to The Hindu here on Sunday, Water Resources Minister K.S. Eshwarappa said the State Government had allowed KNNL and CNNL to increase the borrowing limit by another Rs. 200 crore each this year.

Mr. Eshwarappa said that one of the major hurdles for the Government to increase the borrowing limits of Krishna Bhagya Jala Nigam Ltd. (KBJNL), KNNL and CNNL was the denial of permission to do so by the Union Government.

He said the State Government has decided to stand guarantee for the additional mobilisation of funds by the two nigams to the extent of Rs. 400 crore.

Mr. Eshwarappa clarified that there was no need for permission or sanction from the Union Government now since the State Government itself was standing guarantee for the repayment of the loans raised. To a question, Mr. Eshwarappa said that there was no plan to increase the borrowing limit of KBJNL now.

Legal team

The Minister said there was no proposal before the Government to change the panel of advocates appointed by the previous Government to argue Karnataka's case before the Brajesh Kumar Tribunal, set up to fix the share of Karnataka, Maharashtra and Andhra Pradesh in the additional waters available in the Krishna as per Scheme B of the Bachawat Tribunal Award.

He said the delay in utilising the share of the state in Scheme A of the Bachawat Tribunal Award was mainly due to the lack of planning.

The Government would not allow this to be repeated with regard to the water allocated by the new tribunal to the State under Scheme B. Plans had been prepared for the implementation of the projects, whose estimates were also ready.

To another question, Mr. Eshwarappa said despite differences among members of the Cauvery Water Disputes Tribunal, the State Government was confident that Karnataka would get justice in the final order to be passed by the tribunal.

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