Railways-Karnataka agree on 50:50 cost-sharing

Railways-Karnataka agree on 50:50 cost-sharing

Bangalore (SBC): The impasse between the state and the railway ministry over sharing of cost of projects here seems to have been solved and the 50:50 ratio back on track. The issue was solved at a meeting railway minister D V Sadananda Gowda had with Congress MPs from Karnataka.

The meeting follows CM Siddaramaiah writing to Gowda on the eve of the railway budget expressing Karnataka’s difficulty in honouring the 50:50 cost sharing agreement.

Siddaramaiah had indicated that Karnataka would bear 33% of the project cost, including cost of land, rather than the 50:50 ratio besides providing free land for the project.

Gowda’s predecessor Mallikarjuna Kharge too was one of the MPs who attended the meeting at which Gowda said railways will be financially hamstrung in expediting state’s railway projects if the cost-sharing agreement was not met.

Laying the foundation for a road under bridge in lieu of a level crossing, 146-B, on Padil Bajal Road at Kankanady here on Saturday, Gowda said, “I did not make the letter (from CM) public (and indulge in politics).” Admitting that BJP leader K S Eshwarappa did raise the cost-sharing issue in the just concluded session of the state legislature, Gowda said, “It is only based on the content of the letter and not on the basis of actual letter itself.”

Gowda said politics should not come in the way of development and pointed out that it is for this reason he adopted all the proposals Kharge had made in the interim budget.

Karnataka is one among eight states that share costs of projects, which eventually benefit the states in their development. The CM had cited financial constraints owing to the state rolling out public welfare programmes while seeking a change in cost sharing.

The railway ministry is prioritising execution of ongoing and new projects on need-basis. Accordingly, March 2015 is the deadline for completion of doubling Bangalore-Mysore line and March 2016 for Bangalore-Hassan new line. The budget has allocated Rs. 150 crore for the Hassan line for its speedy completion, Gowda said, adding that Karnataka has got Rs 1,400 crore for various projects.

The Bangalore-Mangalore Express proposed in the budget might initially run via Mysore and be named “Kudla Express” as demanded in the coastal region, he said. This train, post completion of Hassan-Bangalore line via Shravanabelagola, could take the direct route via Hassan, he added. The new train from Kasargod to Baindoor proposed in the budget too will be started soon looking at convenience of various stakeholders, he said.