Karnataka may slash education, health spends to fund Rs 75k-Cr Upper Krishna Project: Report
Bengaluru: The Karnataka government may be forced to cut spending on key sectors such as education, healthcare, and urban development in order to fund the ambitious Rs 75,000-crore Upper Krishna Project (UKP), according to an internal note from the state’s finance department, cited by Deccan Herald on Thursday.
The UKP will require an additional expenditure of Rs 75,000 crore over the next four years, roughly Rs 18,000 crore annually, based on new compensation rates approved by the Cabinet for acquisition of 1.33 lakh acres.
According to the internal note which DH said it reviewed, the finance department stated that money for the project could be raised by implementing a 20% cut in the Rs 80,197 crore developmental outlay (excluding ‘guarantee’ schemes and committed expenditure), which would free up Rs 16,039 crore. These cuts would impact department-wise allocations for education, health, urban development, and other sectors.
Alternatively, if developmental allocations are not reduced, the state may have to scale down some of its flagship initiatives. This includes revisiting allocations under the government’s ‘guarantee’ schemes and subsidies for irrigation pump sets. This year alone, Rs 51,034 crore has been allocated towards guarantee schemes. To bridge the gap, around Rs 15,000 crore could be redirected from these programs, the report added.
Under the UKP, the height of the Almatti Dam will be raised to irrigate 5.94 lakh hectares in Vijayapura, Bagalkot, Raichur, Kalaburagi, Yadgir, Koppal and Gadag districts, making it a significant project for north Karnataka.
Fund cuts are the only way forward as resource mobilisation reportedly seems unviable. The finance department mentioned that Karnataka recorded a revenue shortfall of Rs 7,413 crore in the first five months of the current fiscal year. The state is also expected to lose Rs 6,000 crore due to GST rationalisation and an additional Rs 3,000 crore in mining tax revenue, as President Draupadi Murmu has not approved the enabling law.
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CIAL to be hub for multimodal cargo network, says Kerala CM Vijayan
Kochi (Kerala) (PTI): Kerala Chief Minister Pinarayi Vijayan on Sunday announced that a multimodal cargo network integrating air, road, rail, and water routes will be established, with CIAL serving as its primary hub.
He was speaking while inaugurating the plenary session of the International Cargo Business Summit, organised by CIAL in association with FICCI, marking the 25th anniversary of Cochin International Airport Limited's cargo department.
The chief minister inaugurated the event by moving a gear lever on a cockpit model installed on the stage.
Vijayan stated that CIAL is striving to create a business environment favourable to Kerala's economic growth beyond just functioning as an airport.
He noted that CIAL handled over 65,000 metric tonne of cargo in the last financial year, and this is expected to rise to 74,000 tonne in the current fiscal year.
CIAL has provided a 50 per cent dividend to its investors and stands as a model for the entire country through its operations. Construction of three bridges benefiting four panchayats is also underway.
Furthermore, CIAL has begun the process of obtaining certification for handling pharmaceutical products, which will commence immediately upon approval.
In his presidential address, State Industries Minister P Rajeev mentioned that prominent global companies establishing logistics parks near CIAL would allow for greater utilisation of the airport's cargo potential.
He added that the presence of large-scale companies reflects the growth rate of cargo movement in the region.
The chief minister honoured institutions that demonstrated excellence in cargo exports during the ceremony.
CIAL Managing Director S Suhas delivered the welcome speech.
CIAL Cargo Department Head Satheesh Kumar R Pai delivered the vote of thanks.
