Business Standard

Boom time for bicycle makers

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BS REPORTER Chennai/ Bangalore

For, the new BJP government on Wednesday announced its resolve to extend the bicycle distribution scheme to cover a total of 702,000 students across the state from the present coverage of 435,000 students.

The government will shortly invite tenders from manufacturers for supplying bicycles to government schools and government-aided schools, rural development and panchayat raj minister Shobha Karandlaje told reporters here after the cabinet meeting on Thursday.

 

Karnataka has emerged one of the major buyers of bicycles in the country following the introduction of the bicycle scheme by the previous JD(S)-BJP government.

The scheme, conceived as an incentive to draw girl children from below poverty line (BPL) families in rural areas to schools, saw a total of 175,000 bicycles being distributed in 2006-07 to those studying in the eighth standard. Three major bicycle manufacturers in the country jostled for space in the bicycle market created by the state government.

With the scheme turning out to be an instant hit with the masses, the government decided to extend it to boys in eighth standard in 2007-08 -- taking the number of beneficiaries to 435,000. The budgetary allocation for the scheme was Rs 90 crore during the corresponding year.

The BJP, which stormed to power in the recent assembly elections, decided to remove the BPL ceiling and instead extend the scheme to all students in eighth standard of government and government-aided schools -- a move could prove a windfall for bicycle manufacturers who were desperate to expand in the domestic market.

However, the scheme will not be applicable to private schools and government schools located in the corporation limits. Allocation for the extended scheme will be decided in the budget to be presented by chief minister B S Yeddyurappa on July 10.

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First Published: Jun 20 2008 | 12:00 AM IST

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