In the euphoria over hundreds of crores of rupees flowing into Mysore for JNNURM works, most people have forgotten that Mysore City Corporation has to foot a hefty bill, with no indications till now as to how MCC will meet this challenge. JNNURM is clearly no free lunch.
The City Development Plan prepared by MCC as a prerequisite for obtaining JNNURM projects shows how much MCC will spend over 25 years 2007-2031 towards developing infrastructure in Mysore. During 2007-12, the average yearly expenditure is Rs. 328 crores of which MCC provides Rs.53 crores and the rest comes from central and state grants. The average yearly expenditure for the remaining period 20013-2031 is Rs. 547 crores and MCC has to pay this amount all by itself.
It is not at all clear how MCC can raise Rs. 53 crores per year during 2007-12 and Rs. 547 crores per year during 2013-2031 towards JNNURM works. As it is, MCC has been defaulting in repaying the ADB loan taken a few years ago for the same purpose of infrastructure improvement. As a result of non-payment, the Rs. 130 crore loan has now ballooned to more than Rs. 300 crores. Strangely, MCC remains silent about this fast-growing liability and makes no allocation in its budget towards clearing this loan.
From a cursory glance at MCC's budgets for the last few years, it is clear that MCC can not generate the revenues needed to meet its Rs. 53 crore annual liability for the JNNURM works for the period 2007-12, let alone the Rs. 547 crore annual liability for the years 2013-31. It will be forced to take loans from outside sources for this money. But if MCC has not been able to repay its old (ADB) loan, who will come forward to give a fresh loan? In case some bank comes forward, will it not impose stiff conditions? Will it not ask for a collateral? Will our city be pawned off to pay JNNURM works? Does anyone have answers to these questions?
Another cause for deep worry for all Mysoreans is that these huge expenditures may not produce any lasting benefit for Mysore. In the ADB works, despite the many checks and balances instituted to insure that money was spent properly and the quality of work was high, the works were to a large extent shoddy providing very little benefit. In JNNURM works, these checks and balances are not evident and so the prognosis on the quality of work is not hopeful. Caving in of the road near Ballal Circle and questions raised about the new bus stand are some early indications.
Maj.Gen. (Retd.) S.G.Vombatkere, President, Mysore Grahakara Parishat