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Nod for Rs. 1,979-cr. urban sector investment project

Suresh Bhat

It will be implemented in two phases over the next 6 years


  • ADB is funding Rs. 1,188.04 crore, which is 60 per cent of the project cost
  • The Government is providing Rs. 633.58 crore and the remaining Rs. 158.36 crore will be borne by local bodies

    BIJAPUR: The North Karnataka Urban Sector Investment Project, which aims at achieving comprehensive infrastructure development in 25 urban areas, has got sanction from the Government.

    The Rs. 1,979.98-crore project will be implemented in two phases over the next 6 years. A sum of Rs. 1,250.79 crore has been earmarked for the first phase. Although the project was conceived in the wake of recommendations

    of the D.M. Nanjundappa Committee for Redressal of Regional Imbalances three years ago, much time was lost owing to procedural wrangles, repeated revision of project components and prolonged negotiations with Asian Development Bank (ADB).

    While the ADB is funding Rs. 1,188.04 crore (60 per cent of the project cost), the State Government is providing Rs. 633.58 crore (32 per cent) The local bodies which will be benefited by the project are to meet the remaining Rs. 158.36 crore.

    The Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC), which is supervising the implementation of the project, has started the tender process for various works. KUIDFC Deputy Project Director I.M. Prabhakar told The Hindu that work at the field level would start in December. The NKUSIP covers urban areas such as Belgaum, Hubli-Dharwad, Gulburga and Bellary (city corporations); Bijapur, Bidar, Gadag-Betgeri

    Gangavathi, Gokak, Haveri, Hospet, Koppal, Rabkavi-Banahatti, Raichur, Ranebennur, Nippani, Davangere and Chamarajanagar (city municipal

    councils); Basavakalyana, Jamkhandi, Yadgir, Sindhanur, Ilkal and Shahabad (town municipal councils) and Badami (town panchayat.

    Although they are in the southern region, cities such as Chamarajnagar and Davanagere have also found place in the project following a policy decision that infrastructure in the headquarters of newly formed districts needed urgent attention.

    Sanitation

    It has been planned to spend maximum of Rs. 527.8 crore on construction of sanitation infrastructure. Water supply and urban road infrastructures have got Rs. 293.7 crore and Rs. 291.28 crore respectively.

    Poverty alleviation programme has got an assistance of Rs. 38.83 crore. A sum of Rs. 23.76 crore has been provided for land acquisition. Project assistance and non-municipal infrastructure have been earmarked Rs. 140.46 crore and Rs. 99.2 crore respectively. The outlay has also provision for contingency expenditure of Rs. 347.2 crore. A sum of Rs. 205.2 crore is reserved as interest component and for miscellaneous expenses.

    The Karnataka State Slum Clearance Board will take care of poverty alleviation programme and the State Lake Development Authority take up work and protection of tank. Departments such as Information, Tourism and Youth Services have also been roped in for the mission.For the first phase of the work, the Government has already issued an allotment order distributing the sum among the chosen urban areas.

    The Hubli-Dharwad City Corporation will get the highest allocation of Rs. 160.75 crore and Gangawati the lowest of Rs. 18.36 crore.

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