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Battling losses in lockdown, K’taka puts vacant govt sites on sale
The Bangalore Development Authority intends to raise ₹14,000 to ₹15,000 crore from the auctioning. Apart from this, corner and vacant sites in all urban development authorities across the state would be auctioned for additional resource mobilisation.
Admitting that the state is in “financial trouble”, Karnataka chief minister B S Yediyurappa on Monday announced measures to help in resource mobilisation, including by authorising the auctioning of 12,000 corner sites in the state capital.
The Bangalore Development Authority intends to raise ₹14,000 to ₹15,000 crore from the auctioning. Apart from this, corner and vacant sites in all urban development authorities across the state would be auctioned for additional resource mobilisation. Yediyurappa made it clear that the auction of government-owned sites would be done only if they fetch a “good price”.
“The possible situation once the [Covid-19] lockdown is ended was widely discussed in the meeting. Discussion was also held about the financial situation of the state government and how to mobilise resources. Many suggestions were given and it was decided to implement those suggestions,” Yediyurappa said after a meeting with officials of various departments.
According to officials aware of developments, the state government has lost nearly ₹2,500 crore in revenue from just the stoppage of liquor sales since March 24 when the 21-day lockdown to halt the spread of Covid-19 was announced. The lockdown is expected to be extended on Tuesday.
The officials said the government is likely to take a call on Tuesday whether liquor stores could be opened in the state. They added the state has also decided to use the ₹1,000 crore available for upgrading medical college hospitals. To help dairy farmers as well as poor people, the state would continue to distribute free milk among the poor living in slums, the officials said.
Yediyurappa also announced ₹45 crore compensation for farmers of Raichur and Koppa, who have lost their paddy crop due to hailstorm. While appealing sugar factory owners to clear pending payments to the tune of ₹2,834 crore due to farmers across 11 districts, the chief minister warned of strict action in case they failed to do so.
