Karnataka   

Centre to be asked for compensation for losses

Bangalore: Deputy Chief Minister B.S. Yediyurappa on Monday said in the Legislative Assembly that he and Chief Minister H.D. Kumaraswamy would request Prime Minister Manmohan Singh to compensate the State Government for losses due to waiver of farm loans from cooperative institutions, implementation of the Fifth Pay Commission recommendations for government employees and the ban on the sale of lottery and arrack.

Replying to the debate on the demands for grants, Mr. Yediyurappa admitted that Rs. 2,500 crore to Rs. 3,000 crore, which he expected from the sale of land retrieved from encroachers in Bangalore Urban district, did not materialise. However, the Government was likely to get Rs. 750 crore from the proposed sale of land near the international airport coming up at Devanahalli.

Mr. Yediyurappa said the Government incurred a total loss of around Rs. 5,000 crore because of the waiver of farm loans and the ban on arrack and lotteries. He hoped that the Prime Minister would respond positively to the State’s request.

Later, Congress members led by Leader of the Opposition N. Dharam Singh staged a walkout alleging that the Budget had failed to provide funds for fees and scholarships for Scheduled Caste and Scheduled Tribe students.

Mr. Singh, m. Mallikarjun Kharge and Siddaramaiah alleged that the coalition Government was facing a serious financial crisis. This was reflected in the low allocation of funds for irrigation and other infrastructure projects.

Neither Mr. Kumaraswamy nor Home Minister M.P. Prakash, who were sitting on either side, came to Mr. Yediyurappa defence on the Oppostion charges.

The House passed the Karnataka Appropriation (No. 2) Bill, 2007 for Rs. 52,173.11 crore and The Rajiv Gandhi University of Health Sciences (Amendment) Bill, 2007 for shifting the university to Ramanagaram.

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