The Karnataka government has estimated an investment requirement of Rs 1.25 lakh crore to improve the infrastructure in Bangalore city. “There is a great need to consider mega cities like Bangalore as a special category for providing assistance. The city is the fourth largest technology cluster in the world,” state chief minister D V Sadananda Gowda said.
Addressing a workshop on urbanisation issues in Karnataka, here at the weekend, he said the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has sanctioned 53 projects amounting to Rs 3,476 crore with a central assistance of only Rs 1,141 crore for Bangalore city.
He said the area of Bangalore has increased 12 times since 1949 and the population has grown 12 times since 1951. In the last two decades alone, the city’s population has doubled in its size.
Most of India’s IT companies and 50 per cent of India’s IT professionals are based in Bangalore, contributing 30 per cent of the country’s IT exports. In terms of GDP, it is 4th among the cities in the country. Bangalore is the destination for more than 11 per cent of the FDI in the country, next only to Delhi and Mumbai, he said.
“The spurt in growth of mega-cities linked with the growth of Tier-2 cities. Tier-2 cities in the state are an attractive destination for a variety of economic activities. An international study shows that Tier-2 cities may deliver 40 per cent of the global growth by 2025. Therefore, we need to support Tier-2 cities,” he said.
Gowda said, Tier-2 cities would require an investment of around Rs 27,000 crore by 2030. “We are implementing the Rs 3,000 crore Nagarothana, Chief Minister’s Scheme for Development of Small and Medium Towns, with Rs 200 crore being provided for each of the city corporation. We have also raised 50 per cent of the funds from the market for this scheme,” he added.
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He also urged the Centre to support more cities under the JNNURM project.
“We have established a dedicated Urban Mapping Cell to develop high quality geo referenced maps using aerial photographs and satellite images. For the first time in the country, Karnataka has initiated the Urban Property Ownership Records Creation Project on PPP basis, in five cities,” he said.
The state government has also initiated a bus rapid transit system for Hubli-Dharwad.
“An efficient urban transport system is critical for sustainable growth of the cities. The availability of funds with the cities for urban transport is woefully inadequate. Considering the scale of funding required, substantial amount of central funding support and possibly that of multilateral institutions is necessary,” the chief minister added.
Urbanisation in Karnataka is poised to increase from the present 38 per cent to 50 per cent by 2030. “The present mismatch between responsibilities and financial resources, inadequate capacity, insufficient accountability and excessive controls have affected the cities. This has discouraged investments and stifled economic growth. State and central governments have to work together with the cities to meet the challenge,” Gowda said.