BMIC ghost returns to haunt JD(S)

Once considered a pet project of the Janata Dal (S) supremo H D Deve Gowda, the controversial Bangalore Mysore Infrastructure Corridor (BMIC) project has now become a subject too hot to handle for his son Karnataka?s chief minister H D Kumaraswamy.

The recent developments have virtually split the coalition government in the state. While the JD (S) is in favour of taking over the entire project, the BJP is firm on reclaiming only 2,450 acres "excess land" given to BMIC promoters, the Nandi Infrastructure Corridor Enterprises Limited (NICEL).

The stand-off between the two parties reached flashpoint when the BJP refused to discuss the issue at the cabinet meeting on Tuesday. Now, both partners have scheduled their respective legislature party meetings for June 18, one day prior to the legislature session, for a final take on the subject.

The change of heart of JD(S) supremo Deve Gowda towards NICE since 2003 has perplexed political observers in the state. When the original framework agreement (FWA) was signed in 1997, Deve Gowda, the then PM, was well aware that the BMIC project was essentially a real estate venture.

Government land was leased at a throwaway price to NICEL. The u-turn, according to observers, suggests that the JD (S) is looking at the real estate at stake with new interest as land costs have shot up.

According to the original agreement, NICEL was to be given 20,193 acres (13,327 acres private land, 6,956 acres government land) to create a 111 km expressway and five townships between Bangalore and Mysore, over a period of 10 years.

Political opposition to the project, especially from the JD (S), gained momentum in 2003 when elections were round the corner. Deve Gowda then raised issues relating to the excess land given by the erstwhile S M Krishna-led Congress government.

In fact, the Bangalore Development Authority (BDA), which had acquired land for the Banashankari 6th Stage Residential Township Project, was forced to release a share of the land to NICEL to construct the 26 kilometre long Peripheral Ring Road connecting Tumkur Road and Hosur Road to the BMIC.

"The inferior agricultural land in Banashankari 6th Stage where the BMIC commences was available for Rs 50 per square feet six years ago. Now it has gone up to Rs 1,800 per square feet. The commercial returns from the BMIC are huge," a retired senior bureaucrat pointed out. However, forcing Kumaraswamy to take over BMIC through legislation has backfired.

"Gowda could have cancelled the project on day one, when it came up for approval before J H Patel, whom Deve Gowda had nominated as chief minister when he became prime minister. Instead the agreement went through with the arbitration centre for BMIC being determined as London. He need not have waited for 10 years," the official added.

The government had egg on its face when the cheque for Rs 5 lakh issued to BMIC bounced.

The Supreme Court had admonished the government for interfering in the BMIC project and asked it to compensate NICEL. The government has responded saying a fresh cheque will be issued.