Govt says Nandagudi, BTC for Devanahalli

Govt says Nandagudi, BTC for Devanahalli

Relocation Deadline Stays, No Tax Breaks

Ikram Khan | TNN


Bangalore: Stop devising strategies and plans. Stop working out permutations and combinations to stay put. Move and relocate. A change in address is the only solution. That’s the message committee members of the Bangalore Turf Club (BTC) got after meeting principal secretary V P Baligar on August 29.
Baligar made it clear to BTC chairman Jayant Shah that the government land promised to the club would not be given free or on a long-term lease agreement but sold at guidance value. He also declared that BTC would not get a tax holiday and the club had to pay the fixed tax revenue even as it built the new race course.
While BTC committee members were hopeful of getting the required 150 acres of land near or close to Devanahalli, Shah revealed that Baligar was categorical that seeking land in the Jakkur-Yelahanka- Devanahalli belt was out of the question and the government has identified land at the proposed Special Economic Zone at Nandagudi, about 50-60 km from Bangalore.
Briefing the media on Thursday, rural development and panchayat raj minister Shobha Karandlaje said the government had not yet identified an alternative land for the BTC and this has led to a confusion in the BTC.
Unhappy with the proposed location, given the distance and poor facilities, a couple of leading owners pointed out that the sport would be hit hard simply because the cost of maintaining and racing horses would double. Also, commuting between Bangalore and Nandagudi would be the biggest hurdle.
“It’s just not feasible. There aren’t any big hotels and, more importantly, no standard hospitals nearby. It’s a high-risk sport and fatal accidents and falls during a race call for immediate top-class medical attention,” said G Sharath Reddy, an owner.
Sharath also pointed out that it costs Rs 10,000 per month to maintain a horse at BTC and this amount would double if BTC shifted to Nandagudi. “Fodder costs and transportation bills of trainers would go up and this will chase away most small owners,” said Sharath.
Baligar reportedly told BTC secretary Nirmal Prasad that there would be no extension on the deadline (December 31, 2009) for BTC to move out. Also, if BTC didn’t toe the line in accepting the proposed place and listed conditions, the government is considering inviting investors and promoters who would be granted the licence to build the course and conduct racing. The principal secretary made it known that the government is confident and it understands there are many big players in the market ready to sow the seeds in this high-returns sport.
GOVERNMENT TALKS TOUGH
No land near Devanahalli Move to site at Nandagudi Land won’t be given free Pay guidance value for land No tax breaks Will tap pvt investors if BTC doesn’t shift
BTC POINT OF VIEW
No hotels, hospitals near Nandagudi No finances to buy land at guidance value Long commute will deter sports’ patrons Owners’ expenses will double Ends Bangalore’s reign as premier centre Other centres may benefit Exploring defence land options ‘BTC lacks funds for land’
Bangalore: A trifle shocked by this hardline stand of the government — regarding shifting out of the Bangalore Turf Club — club chairman Jayant Shah disclosed that the guidance value at Nandagudi is Rs 50 lakh per acre and BTC dosen’t have the resources to purchase it.
“A look at our balance sheet will show that we made a profit of Rs 34 lakh last year. We are a Rs 1,000 crore turnover club but after paying taxes, Rs 42 crore to the state and Rs 6 crore as TDS to the central government and then putting the required money back into the game for promotion and development, we are left with Rs 30-40 lakh each year. We just cannot afford to buy the land at that rate,” said Jayant Shah.
Nirmal Prasad pointed out that apart from Hyderabad, all the race courses in India were running on lease agreements with their respective state governments.
The Hyderabad Race Club got the land for a song from a sporting nawab, a patron of the game.
Meanwhile, some insiders in the BTC administration revealed that coming to terms with the fact that onus is on them to seek other viable options, the committee is checking out the possibility of relocating to defence land. It feels the defence land at Hebbal suits them best. “Even if we get half of the 300 acres of defence land in Hebbal, we can build a modern international race course,” said a steward.
Trainer Arjun Manglorkar, while appreciating BTC’s approach of not offering resistance to the government call to move out, pointed out that the existing course is small and cannot meet the growing demands of professionals, owners and railbirds. “With several new owners coming in, there is a definite increase in number of horses stationed at the campus and we are facing stabling problems. The attendance too is going up and Bangalore certainly needs a bigger and better race course,” he said.
When asked about the Nandagudi option, he shot back: “Transportation, security and maintenance will be a problem and that will result in increased costs. This will force big and small owners to other centres and if that happens, Mysore will take a giant step and push Bangalore down the line.”