Call for bonds to fund Upper Krishna project

Karnataka legislators have favoured raising resources externally through bonds for early completion of all irrigation projects on the Upper Krishna in north Karnataka.

Participating in the budget discussion in the State Assembly, Basavaraj Rayareddi of Congress, who represents Yelburga, said, “The State government, instead of piecemeal approach to irrigation projects, should explore raising resources through bonds or seek Central assistance for early completion of Upper Krishna Project (UKP).”

“By finding a one-time solution, Karnataka can create long-term irrigation assets in the shortest possible time,” he added.

Rayareddi also suggested that an all-party delegation led by the Chief Minister visit Delhi to prevail upon the Centre to get UKP declared as a national project.

Explaining the benefits of getting the national project status for UKP, Rayareddi said the State would then get 90 per cent Central assistance for the project and it would also be eligible for funding via bonds.

Rayareddi alluded to the incentives Andhra Pradesh received after the Polavaram Project was declared as national project a few months ago.

Basavaraj Bommai of the BJP said heavy focus on the Cauvery and Krishna basin irrigation projects had deflected attention from other irrigation projects in the State.

“The State government has to opt for external borrowings now, for it has reached the maximum limit under the Fiscal Responsibility and Budget Management (FRBM) Act.”

P Rajeev of BSR Congress party supported the idea of large-scale borrowings or Central assistance. “With the paltry spending being made now, it will take years to complete the UKP,” he said.

For early completion of the Yettinahole river diversion project to supply drinking water to the districts of Chikkaballabur and Kolar, Rayareddi favoured creation of a separate body on the lines of Karnataka Neeravari Nigam Ltd (KNNL), Cauvery Neeravari Nigam Ltd (CNNL) and Krishna Bhagya Jala Nigam (KBJNL).

State Minister for Water Resources MB Patil pointed out that a separate division already exists under a superintendent engineer. A separate nigam for Yettinahole is not feasible, but the government is thinking of creating a nigam for covering the central districts of the State.

Currently, various nigams in the State have a borrowing plan in addition to budget allocations. During 2014-15, all the three nigams (CNNL, KNNL and KBJNL) borrowed ₹2,000 crore and in 2013-14 ₹1,650 crore was raised.

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