Karnataka   

Bangalore civic body facing financial crunch

Bangalore: Amid all the talk and grandiose plans to develop the Bangalore metropolitan agglomeration akin to some noted cities worldwide, the Bruhat Bangalore Mahanagara Palike (BBMP) has hit a roadblock of a different kind: lack of funds for even infrastructure development.

“We just do not have the money for infrastructure development. The revenue of the BBMP will just suffice to meet the establishment costs apart from the cost involved for some maintenance work. The onus is now with the Government to provide special grants to the BBMP to undertake some major works,” sources in the mahanagara palike told The Hindu.

The BBMP has one of the poorest per capita revenue generation among the municipal corporations in the country, and this has been adduced as one of the main reasons coming in the way of meeting the expectations of people. According to a recent report of the Reserve Bank of India on municipal finances, the per capita revenue generation in Bangalore is only Rs. 810 compared with Rs. 3,417 of the Greater Mumbai Corporation, Rs. 1,890 in Pune, Rs. 2,344 in Nasik, Rs. 2,577 in Surat, Rs. 1,029 in Indore, Rs. 1,385 in Chennai, Rs. 1,178 in Kolkata and Rs. 1,233 in Vadodara. Only Kochi with Rs. 858 comes close to Bangalore. The per capita revenue generation in New Delhi is Rs. 872, but the Delhi Corporation receives special grants from both the Delhi Government and the Centre.

It is in this connection that Karnataka Governor Rameshwar Thakur has called a high-level meeting this week to look into the financial needs of BBMP.

As per a CRISIL report submitted last year, BBMP and BWSSB require Rs. 33,000 crore for infrastructure development, and towards this the State Government should provide Rs. 20,000 crore over the next few years. The remaining funds should be raised through public-private partnerships.

Compared with special grants of Rs. 350 crore provided in the last budget and Rs. 500 crore promised for works under the Jawaharlal Nehru National Urban Renewal Mission (in 2007), this year’s budget has set apart Rs. 357 crore under the mission. The BBMP has to bear 50 per cent of the cost for schemes.

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