Wednesday, November 23 2005 20:00 Hrs (IST) - World Time -

Banglore: Planning Commission Deputy Chairman Montek Singh Ahluwalia today (Nov 23, 2005) asked Karnataka to furnish replies to the clarifications sought by the Union Urban Development Ministry on the National Urban Renewal Mission as the state has submitted a proposal seeking Rs 10,779 crore assistance.

"I have suggested to the State Government that they should ensure expeditious clarifications to Urban Development Ministry on the doubts raised by it," he told the press after a meeting with Karnataka Chief Minister N Dharam Singh here.

Describing the presentation made by Singh on the infrastructure projects implemented and proposed by the State Government as 'very fruitful', he said, he would also speak to the Urban Development ministry to clear projects proposed by the state.

Agreeing with Singh's contention that Karnataka had large infrastructure requirement, particularly in Bangalore City, which has attracted global attention, Ahluwalia assured that the state's request for certain concession in duties and more funds would be considered.

He said the state has implemented several infrastructure projects and he was impressed by the performance in some of the sectors, especially in electricity distribution, where the Government has been successful in bringing down transmission and distribution losses.

"The achievements of Karnataka is noteworthy and worth emulating by other states," he lauded.

On the Metro Rail project, Ahluwalia said it was in the final stages of approval under a new policy framework and indicated the funding was unlikely to be on the model of Delhi project, which he described as 'old pattern'.

Speaking in favour of Metro Rail over which Janata Dal-Secular (JDS), the coalition Government partner in the State has been expressing reservations, Ahluwalia said, "If the project is implemented speedily, it will unfold a big change in infrastructure facilities in Bangalore."

"I feel the metro rail which has logical technology is a good project and the Center would support it," he said.

Singh said he has requested Ahluwalia for time till January for the State to commence negotiations on its plan size.

He said as the Panchayat polls are taking place during next month, it would not be possible for him to attend Planning Commission meeting to finalise the State's plan size till January.

Singh in his presentation briefed Ahluwalia on the infrastructure projects implemented by the coalition Government in the last 18 months and those proposed during the next 12 months, besides seeking at least 50 per cent of the cost of these projects be shared by the Center. He urged the Center to grant full exemption of customs and Central Excise duty for Metro Rail project to reduce the project cost and increased Central contribution from 20 per cent to 25 per cent.

The Center as promoter should also meet cost escalation equally with the State, Singh pleaded.