PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA *'* *

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1 PROCEEDNGS OF THE GOVERNMENT OF KARNATAKA Sub: Taking up New Railway Projects in Karnataka. Preamble: *'* * Railways areoneofthe most convenient and widely used means of travel 'in tndlaandalso.avery.critical component in the logistics. Th~ use of rail network forfrelqht.iand passenger transport has the potential to reduce road ',,>co'ngestioh, mprove. safety and reduce,environmental impacts. (Hence, there is, 'anurgentneed to increase rail track length and modernize rail infrastructure by " ; "::. dnfusingtechnology40 makeit world-class rail infrastructure in the State). As per,:,>'-the'rec6ryllnenoatiohsnfdr.cd.m. Nanjudappa etrrrimittee-;~y-th-e-deile1oprnefitof'=~-"-~ "'Tailway<'!ine (::-in:;.thetbackward italuks of Karnataka, these taluks will have '0" ::~:'i;";gcohnectivity"with;ithe:!gapital and the neighborfiigstcites 'whlch:'wih~:-otherwise-' =.,:;~ i~impro\te:the socio - economic status of the peop.t~_b.ytqg,!b~~r~;=, ~ ~=, " i,< 2.;The~developmentof railways in Karnataka has suffered due to certain " geographicallimitations;:the coastal area is separated from the hinteriand of the State by the 'Western',Ghats., These ghats are afforested and called a "biological hots'pbt".'];heg,hatsarelcrossed from the rest of the State by only one railway 'i~liriedn~the:;so,uthonhe~:state i.e., the Hassan-Mangalore single line. Though the L}l"; t~te};h~k:,;jgof;'{ab~i:jt: OO"5Kr'1{'of coa~t(:1.;fr8r1t,.the"ecologicallimitatic)hsh~ve "'iii,,~ed~d',ih~ Pro~i~i6~i~90fR~iCconnedtryi~~t~thePdrts-~",,'",<U,3.: The, rail :;oute,density ill the Sta'te (i.e.:rail length in kilometersper ~~.-",~"-~~.'"", sq.kms. of land.areajs ~6;9 kms. compared to 32 krns.jn.tarnil Nadu,27 krns.. in Gujarat and 27 kms. in Kerala; the existing rail length is 3,250 kms in Karnataka. Presently, Railways are engaged in the task of constructing kms. of rail costing Rs.9,453.6 crores in 19 projects. Out of this six works have been agreed to be cost-shared by the State Govt; the commitment is Rs.1,516.80,., -'>"".." crores (for a length of 969 kms.). During the last 7 years Railways have implemented 498 kms. of rail at a cost of Rs crores and State Government's share has been Rs crores so far. ":,', StHS5 talukas (including

2 "".'-. "',-"..._..._._.._ ;, district of Kodagu do not have Rail connectivity). The State has announced 10 industrial zones, have committed to take up two ports in Tadri and Haldipur and also has sanctioned a power project in Kudigiin Bijapur. The Vision Document 2020 envisages transferring about 2(3% of the agricultura,1labour force to nonagriculture by 2020 by creating nearly 7 lakh jobs in non-agricultural sector annually. fthe industrial zones and consequent employment have to materialize,...they need logistics support to the ports and power plants; just-in-time iogistics ;",haveto';be'providedforthe State to be competitive in inviting investments. For ~'." this adequate measure of railway corridors are a must.., ", ".,; '-' ;"A:<ro~1ncreasEdherail track length in the State, the State Govt had taken,can initiative-totake up rallprojects on cost sharing basis (50:50',-'2i3 rd and 1/3 rd ) "~ ('since,2002)-however,,the pace of sanctioning of projects and its execution in.the - - =:::---~---.:-----=-. ~-.,. ~-:- ~-"'::'-=-= ---=:.::,.'.' ' _'.:.;--:_ ;' State.are.happenlnqata very slow pace. A comparison between States is as below: Area (Sq km) >2,75,045. ~:/a,96,024 th in Kilometers Total. 38,'863,.1 17,. ", ::1,30, Keeping in view of all the above points and considering the long gestation period of the railway projects, the State Government has felt the need to provide the following support systems to the railways for under taking railway projects: (a) Double -GoK's share of investment in Railway infrastructure in case Railways also double up the allocation: r: (b) Acquire land for new projects and give the same free of cost to railways and share 50% of the balance cost in respect of new projects;

3 .. '. '.' 7. f these rail projects are to be implemented in the next 5 years, the following would be the approximate sharing of costs between Ministry of Railways and the Government of Karnataka :,..,.) New Cost Sharing (item above) ",)1 ).Lt ; PPP Projects , )/.,..; -~ ne' '-"1 Total The year-wise spread S as below: (Rs n Crores).., :-..! Share of costs and its agencies..., S.No. Go GoK Total Type i Share Share Capital Others Land Capital Others Go1 GoK '---, 1 Cost sharing of works., Cost sharing of works (out.,. i of present non- sharing works, under.,..! execution) ' !~-l Ending S.No. Present NCS to CS PPP New Cost -1 Year Cost, '... Sharing.Sharinq. '.'.' ' '.- :,..." ",.", - Works i... <:':. ': - '.. -, ' ' :'2409 ' " ' J ( l ! J NCS - Non Cost Sharing works undertaken presently by railways without. Government ofkarnataka share so far. C S - Cost sharing works. '1!

4 (c)to continue the present sharing arrangement in respect of six projects. (d) To request Railways to entrust to K-RDE new railway projects that are proposed under the PPP - mode. {established through an MoU between Govt of ndia and Govt of Karnataka). 6. The Government, thus, delineates a new strategy to participate with Railways in implementation of Railway projectsas bel()w:... S. No. Projects & Type Remarks Cost Sharing Works - Presently under To proceed implementation - r present arrangement 1. Sholapur-Gadag (Gauge conversion) 2. Shimoqa-Talaquppa (Gauge conversion) 3. Bangalore-Mysore (Ooubling)---" "--'-"-'",,-=-,,-,,='=-=.-===--.=. 4. Kottur-Harihar (New Line) 5. Munirabad-Raichur (New Line) 6. Bidar-Gulbar a New Line) 11 Projects undertaken by Railways but not on cost-sharing till now Hassan-Bangalore 2. Kadur-Chickmagalur-Sakleshpur 3. Arsikere-Birur 4. Kolar-Chickballapur New projects proposed by GoK for costsharing 1: $himoga _"~~rlh':lr~ 2. Whitefield.:. Kolar.. O"avangere -Tumkur 4. Gadaq - Haveri the cost of G6K..'({)/.Toshare '.balance 'cost on 50:50 basis,between8.ailways & GoK V New projects to be taken up under PPP mode 1. Hubli-Ankola 2. Talaguppa-Honnavara /' 3. Kudachi-Bagalkot. 4.Bijapu~Shahabad vl)5. Oharwad-Belgaum To participate with 13% share capital by GoK and 13% bygol n an SPV to be created for uneertakinq projects under PPP mode.

5 8. The matter has been examined in detail. f, the projects listed in para - 5 are commissioned, 2421 kms of railway line would be additionally developed in the state. 9. Hence this order, ',.'C,., ~.: :. c.\-',:.,,;:.,;: GOVERNMENT ORDER NO.DD 35 NSW 2009, BAN GALORE DATED ' r-.. (Jmnthe~ circumstance': explained in preamble, approval of the state Government is here by accorded for therfollowing; ",', ":", i).,;" Undertake cost sharing in the railway projects during the next five years, as stated in Para 5 and 6 ebove=r> L i':;.:.(fi)',,(acquire the lands required for the railway corridors! ':.'C";;,-:," (?:y' '~~'!Tprojectsmentioned in para 5 at the cost of Government af Karnataka. '.. ',> :.;' ",;(iii):'; ;To z participate in the SPVS to be created for projects approved by railways under PPP mode By order Clnd,in the name of ::Bgvernorof,K~rlJatak~"",:,', H~33t)~.)"'$~3 4-,B."6 (N. Manjula Geetha)...' Under Secretary to Gavernment, lo.trastruct!-lee:?_q.~~~!~e_rn_~!],!g.e;.p_artn:!~n~.,..,..... ~\.(,\.( To: The Compiler Karnataka Gazette for publication in the gazette.of next issue and to supply 50 copies to this department. Copy to: The Principal AccouhtantGeneral in Karnataka, Banqalore. 2. The Accountant General in Karnataka {A& E), Bangalore. 3. The Chairman, Railway Board, Rail Bhavan, New Delhi

6 ~------_,..._---_.,----~. '... -,.. "-..~" 4. The Chief Executive Officer, K-RDE, MSL House, 7th Floor, #36 Cunningham Road, Bangalore The Chief Administrative Officer (Cons), South Western Railway, No.8, Millers Road, Bangalore The Senior Director, (PF & R) Divn / Director, (PM& Divn.) Planning Department, MS Building 11 Stage, 'Bangalore. 7. The Financial Advisor and Chief Accounts Officer (Construction), South Western Railway, Bangalore. 8. The General Manager, SWR, HUBL. 9. The Director, Treasury, Bangalore. ;-10.The--Joint Director; State Huzur Treasury, Nrupathunga Road, Bangalore. _ 11-.The Under Secretary to Govt. (Exp.), Finance Department The PS to PRS / SS, PA to JS S.G.File / Spare copies. r: