Inadequate funds to solve Bangalore's infra issues

By Faye D'Souza, CNBC-TV18

The Karnataka government admitted in its Budget session today that it does not have the money to solve Bangalore's infrastructure problems. Rs 36,000 crore is the estimated bill to fix Bangalore's crumbling infrastructure over the next five years. It is proving to be far too expensive for the BJP government in the state. 

BS Yeddyurappa, CM of Karnataka said, " I have mentioned it in the Budget that we don't have the money. So, we have to encourage private partnership."

Shaping the city's infrastructure

The Chief minister has allotted Rs 1,800 crore for Bangalore's infrastructure, Rs 3,000 crore for an outer ring road and Rs 700 crore for civic issues leading to a total of Rs 5,500 crore. It is Rs 30,500 crore is short of the estimate. But the government seems confident that the private sector will be more than willing to share a slice of the development pie.

BS Yeddyurappa, CM, Karnataka, said, " We are consulting everyone, planning and discussing. A separate Committee will be set up for this and I will be the Chairman of that committee. We will review every two months. So many people are coming forward to invest in Bangalore's development."

Calling private companies for funds

The Bengaluru International Airport, which was a private-public venture, has not set an encouraging example. The state government had kept its end of the bargain and so it's optimism of eager private partners in development projects may be misplaced.

Karnataka State Budget

(Rs Cr)           Project

1800         Bangalore's Devpt
3000         Outer Ring Road
700           Infra Facilites
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5,500        Total