BMP seeks Special Purpose Vehicle to raise funds

BMP seeks Special Purpose Vehicle to raise funds

The Hindu

Money raised to be used for road works

# BMP has been starved of funds after the abolition of Octroi
# Tenders for core ring road to be called for in eight weeks

BANGALORE: The Bangalore Mahanagara Palike, which is finding it difficult to undertake basic road repair works owing to paucity of funds, has urged Chief Minister H.D. Kumaraswamy to constitute a Special Purpose Vehicle (SPV) in favour of the civic body to enable it to raise around Rs. 200 crores to improve the city's infrastructure.

According to sources, the BMP will be able to internally raise around Rs. 200 crores, and through the SPV will raise an equal amount. Either the State Government can contribute to the SPV or permit the BMP to raise the money from external borrowings.

The BMP has urged reportedly the Chief Minister to chair a meeting of senior officials and approve the SPV proposal. It demanded that the SPV be exempt from the purview of the Karnataka Transparency in Public Procurement Act, at least for a calendar year and this could help the BMP to quickly award tenders for asphalting of roads to reputed construction companies.

Sources said inadequate financial resources, lack of response from contractors involved in execution of road asphalting works, escalation of price of material, delay in approval of projects by BMP standing committees are some of the factors delaying road works.

The BMP has been starved of funds after the abolition of Octroi. Though the city generates 80 per cent of the State's revenue, it has been receiving only one per cent of it, sources said.

Cutting of roads to lay cables or pipes by utility agencies such as telephone companies, Bangalore Water Supply and Sewerage Board (BWSSB) and Bangalore Electricity Supply Company (BESCOM) affected traffic in they city.

The BMP has commenced work on 350 km road in 100 wards and it is likely to be completed by April 15. The Karnataka Land Army Corporation (KLAC) is executing 26 roads (44 km) under the Fast Track, and works are expected to be completed by April-end. Works of seven roads under the Karnataka Municipal Reform Project (KMRP), aided by the World Bank, are under progress and expected to be complete by October.

To decongest main roads in the city, a core ring road has been proposed under the National Urban Renewal Mission (NURM) at a cost of Rs. 236 crores.

The 29-km road will have 12 grade separators. Tenders will be called for the works in eight weeks. The BMP has also decided to take up work on 33 roads (111 km) under KMRP, sources said.