The Hindu : Karnataka / Bangalore News : More funding sought for improving infrastructure

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Friday, Jun 20, 2008
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Karnataka

Karnataka - Bangalore

More funding sought for improving infrastructure

Special Correspondent

Chief Minister Yeddyurappa presents State’s case to C. Rangarajan

Bangalore: Chief Minister B.S.Yeddyurappa on Thursday informed C. Rangarajan, heading the Economic Advisory Council to the Prime Minister, that the State would require more funding to improve urban infrastructure, arrest inflation and reach inclusive growth to more people.

Speaking to presspersons later, Dr. Rangarajan said: “I used my visit to Bangalore to accept Chief Minister B.S. Yeddyurappa’s invitation for a brief meeting.

He explained the key financial issues facing Karnataka. Improving fertilizer supply was also discussed; with a good monsoon expected, getting enough farm inputs will be crucial to farmers. I will take note of the various needs of Karnataka.”

Mr. Yeddyurappa said: “Bangalore accounts for 30 per cent of the information technology exports from India. The city’s rapid expansion has placed tremendous pressure on infrastructure.”

Study

A study commissioned by the State Government indicated that Rs. 31,000 crore was needed for improving the city infrastructure, to be spent up to 2012.

The State Government could mobilise Rs. 5,000 crore, and the Union Government was requested to allocate Rs. 7,500 crore, but the actual allocation so far was Rs. 1,350 crore, Mr. Yeddyurappa said.

Helping hand

“Delhi needs to give a helping hand by a substantial increase in funding under the Jawaharlal Nehru National Urban Renewal Mission or it will become extremely difficult for us to find the resources to improve Bangalore’s infrastructure,” he remarked.

On the matter of inclusive economic growth, 40 per cent of Karnataka’s farmers still had no access to formal financial services and many farmers borrowed from local moneylenders and faced debt burden.

The banks were enabling farmers operate “no frills” account and on its part, the State Government was examining a plan to take up an IT-enabled financial inclusion package for three backward districts, on a pilot basis, the Chief Minister said. “The Government can only be a facilitator, the banks have a bigger role,” he added.

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