As Karnataka and the rail ministry tangle over funding the unfinished Bangalore-Mysore double-tack rail link, social activist Maj. Gen S G Vombatkera (retd) has sought to put the issue in perspective. The 10 percent stand-off involving the government and the railways works out to Rs.30 crores, he says, adding that finding such amount in the state budget wouldn't be beyond the capacity of finance ministry officials.
To recap the story, the Bangalore-Mysore double-track was estimated to cost Rs.300 crores, to be borne on 50-50 basis by the Rail ministry and the state government. The track doubling work came to be stopped at Ramanagaram, as the Rail ministry wanted Karnataka to chip in 60 percent , while the state government maintained that they wouln't put in more than 50. That 10 per cent difference, it's assumed, adds up to Rs.30 crores.
It is not clear, however, as to: 1) why the Rail ministry had an after-thought over cost-sharing; and 2) whether their 60 per cent demand applies to the unfinished or the entire project cost. It may well be that Karnataka has taken a principled stand in its refusal to budge, but the delay in resolving the tangle hurts the state, particularly Mysore, a lot more than the Rail ministry.
Gen.Vombatkere's point is that we ought to take the initiative to meet the deficit, quickly enough, because the cost-benefit ratio of the rail project weighs heavily in favour of socio-economic progress. Besides, further delay in resolving the matter would only escalate cost, and defer benefits.
One would like to have Gen.Vombatkere's thoughts on the following suggestion.
If the government were to come forward to bridge the 10 per cent gap, even partially, say to the tune of Rs.10-15 crores, it could motivate stake-holders, such as the commuters, business and commercial establishments, tourism industry, to accept a cost-sharing formula. The stakeholders could be levied a reasonable rail-link cess, till such time the project deficit is met. IT companies located in Mysore could chip in, with a one-time contribution towards the rail-link deficit fund
Non-payment of its share by Karnataka has slowed down track-doubling work on the Kengeri-Ramanagaram sector. "We have spent our (railways) share; and are expecting the state government to provide its share," South Western Railway GM Trilok Nath Perti, told media, Bangalore (April 1, 2005).
Work on track-doubling will not proceed any further, if Karnataka refuses to bear 50 per cent of the project cost, now estimated at Rs.220 crores (earlier estimate - Rs.200 crores), according to C H Vijayshankar, MP, who recently met the Railway Board chairman and officials.
The railway board has so far sanctioned work till Ramanagaram. And the government has yet to clear its share of cost for the sanctioned work. The MP, citing the railway board chairman, disclosed that the cost-sharing basis was 60 : 40 up to Kengeri from Bangalore. It's 50 : 50 for the Kengeri-Mysore stretch of the double-track. (April 11, 2005)
It would be helpful, if someone knowledgeable does some arithmetic for us, quantifying Karnataka's share in terms of hard cash. Percentages have a mystifying way of hiding firgures that keep escalating like taxi-meters. For any meaningful discussion we need to know: 1) the cost break-up for the Bangalore-Kengeri and Kengeri-Mysore sections; 2) Karnataka's outstanding dues in respect of the completed portion; 3) Provision made in the cost-sharing agreement in respect of cost escalation; and 4) revised date for project completion.
Government of Karnataka (GoK) says that it can bear only 50% (and not 60%) while the Railway Board (RB) says that it can bear only 40% (and not 50%) of the cost. If there is an intention to get work done and cut foolish bureaucratic red tape, then let GoK put down 50% on the table and let RB put down 40% on the table, and let us get 90% of the work done! The decision regarding the balance 10% can be taken later (in a subsequent financial year), but the work must continue and be completed at least upto the (undisputed) financial commitment already made, namely, 50% by GoK and 40% by RB. However, if the percentage is quantified (and I am confident that a school child can do it without a calculator, since it is a straightforward 10% of the total cost estimated), then GoK can see how to find the amount; it can be done by (1) undertaking to budget for it in a subsequent year, or (2) raising bonds, or (3) convincing RB to pick up the bill, or some combination.
Whatever the percentages agreed upon or being argued about between Government of Karnataka (GoK) and Railway Board (RB), it should be only secondary to the AIM, which is to double the rail link. Let GoK and RB see the "eye of the bird" like Arjuna did, and when the 10% is found, the target will be hit.
Bureaucratic red tape must not be permitted to stand in the way of progress.
Ramanagaram-Mysore track-doubling is at a stand-still because of Karnataka's failure to honour the cost-sharing agreement. Mysore MP, C H Vijayshankar has quoted Railway Board chief R K Singh as saying that the state government has yet to pay up its share, Rs. 48.82 crores, towards the cost incurred on the Bangalore-Ramanagaram section. It was during S M Krishna's tenure as CM that Karnataka signed an MoU with Railways for implementing Rs.220-crore track-doubling project on a 50:50 cost-sharing basis - The Hindu, July 18, 2005
