FM rebuffs Gowda

FM rebuffs Gowda
Deccan Herald

In a rebuff of sorts to H D Deve Gowda, Union Finance Minister P Chidam-baram has refused to intervene in the messy affair that is Bangalore Metro and categorically told the former prime minister that the Centre was “fully committed” to implementing the proposed project.

In a rebuff of sorts to H D Deve Gowda, Union Finance Minister P Chidam-baram has refused to intervene in the messy affair that is Bangalore Metro and categorically told the former prime minister that the Centre was “fully committed” to implementing the proposed project.

In his November 18 letter to the Janata Dal (Secular) president, Mr Chidambaram virtually asked to sort out his objections over the Rs 6,000 crore project with the State government himself.

Mr Gowda’s October letter had listed what he considered shortcomings of the urban transport project and called it a burden on the State government.

Thrust on urban projects

Mr Chidambaram, who was finance minister when Mr Gowda was the prime minister in 1996-97, said in his one-page letter: “The issues raised in your letter primarily concern the Government of Karnataka (GoK) and it is for the State to make an in-depth assessment about the financial viability of the Bangalore Metro project and the extent of exposure that the State government can take.”

He added: “The Government of India (GoI) is fully committed to promoting urban transportation projects. The nature and quantum of support by the GoI is presently under deliberation in the context of a national urban transportation policy which is expected to be announced shortly. With regard to the specific case of the Bangalore Metro project, as you are aware, the proposal has been considered by the Public Investment Board (PIB) and will be taken up for consideration by the Cabinet in due course.

“Since the issues raised in your letter primarily concern the GoK, I would suggest that you may like to utilise your good offices to impress upon the GoK about the need for a well-considered decision in the matter,” the Union minister, who has supported the project like Planning Commission Deputy Chairman M S Ahluwalia did recently, added.

Mr Gowda, who is opposed to the Metro and wants the State to take up the Mono Rail project, had said in his letter that the cost of the project would be burdensome to the State as it would have to meet cost escalation and cash losses in the initial years while the GoI did not want to share any expenditure out of the envisaged further investment of Rs 347 crore for procurement of additional rolling cost. The former prime minister had stated that the PIB was not in favour of financially supporting the Bangalore Metro beyond Phase I.

Financial feasibility

Mr Gowda, referring to the route alignment and community consultations, said serious reservations raised by various trader associations and by the people whose houses and shops were going to be affected had not been taken into account. “Though the PIB has told that community acceptance of the project is available, we know that it is far from truth,” he had said.

“I hope the GoK has not committed the serious procedural irregularity of accepting all the observations of the PIB without going through the requisite formalities. Is it financially feasible for the GoK to accept all this extra financial responsibility? This is a matter on which the Cabinet had to take a considered decision,” he had said.

Metro face-off

Chidambaram lobs Metro ball in State court

'Cabinet to take up project'

'Centre committed to Metro'

'Use your good offices with GoK'