KBJNL to raise Rs 500 cr via bonds for expansion

The Karnataka government has permitted the Krishna Bhagya Jala Nigam (KBJNL) to raise Rs 500 crore in bonds to fund irrigation projects in the Upper Krishna basin.

“The matter was discussed at the cabinet meeting recently and it was decided to accord an in-principle guarantee to KBJNL to raise Rs 500 crore through a bond issue,” Basavaraj Bommai, minister for major irrigation told Business Standard.

Though the exact timing of the bond issue is yet to be decided, he said it is likely to be floated during the third quarter of the current fiscal depending upon the market conditions. The details of the bond issue were yet to be worked out, he said.

KBJNL is executing the Upper Krishna Project (UKP) in the Krishna river valley as a multi-purpose irrigation project. For implementing this project, the KBJNL has been raising funds from the capital markets and has been regularly servicing its debt obligations.

KBJNL has made several bond issues through private placements, public issues from time to time.

The Nigam has mobilised Rs 6,620.65 crore from 1995-96 to 2007-08.

The latest revised estimated cost for Upper Krishna project, Stage I is Rs 3,959.80 crore and Upper Krishna Project Stage II is Rs 6,891.59 crore and the total project cost is Rs 10,851.39 crore. As per Planning Commission approval dated January 22, 2009, the cumulative expenditure up to end of March 2010 on UKP in both stage I and II was Rs 10,267.93 crore. However, a sum of Rs 10,675.68 crore has been spent on UKP till March 2011. The expenditure in 2010-11 was in the range of Rs 583.46 crore.

The stage I Phase-III and Stage-II works are nearing completion. It has been planned to irrigate about 622,000 hectares of land falling under the drought prone districts of Bijapur, Bagalkot, Gulbarga and Raichur. As on September 2010, an outlet potential of 6.02 million hectares has been achieved. Against this target, a potential of 17,500 hectares were created during 2010-11.

Presently, KBJNL is constructing five barrages across river Bheema to utilise 9 TMC of water. Already construction of five barrages like Ghattaraga, Kallur ‘B’, Yadgir and Joladagi - Gudur barrages are completed and water is stored and utilised. In respect of Sonthi barrage to utilize 4 TMC of water, construction of modified scope of civil work of barrage, providing gates, lifting system work on turnkey basis, among others are in progress.

In addition to the above, four works namely Jeerigehal, Manikeshwar, Halhalla and Chandapura anicuts have been taken up across Manjra River in Bidar district to utilize 4.8 TMC of water. Civil works are in progress.