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This is an archive article published on September 5, 2007

A corridor and tunnel vision

India's first private infrastructure project, comprising an expressway connecting two key cities in south Karnataka

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The figures are impressive: India’s first private infrastructure project, comprising an expressway connecting two key cities in south Karnataka, Bangalore and Mysore; a Rs 2,250-crore Build-Own-Operate-Transfer (BOOT) project; an 111-km, four-way expressway; travel time between Bangalore and Mysore reduced from 5 hours to 90 minutes; and five special townships along the expressway, including a corporate centre, a commercial centre, a farming and marketing centre, an industrial centre and an eco-tourism centre. But all this, of course, depends on the Bangalore Mysore Infrastructure Corridor being built. Nearly two decades later, there are few signs of it. Last week, the H D Kumaraswamy Government put up another hurdle

1988: The Janata Dal state Government proposes a Bangalore Mysore Expressway project, but fails to attract investors

1995: JD back in power with H D Deve Gowda as CM. Proposes a BOOT project and signs deal with a consortium of VHB and SAB from the US and Kalyani Group from India on Feb 20

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April 1997: Then JD chief minister J H Patel signs Framework Agreement with Nandi Infrastructure Corridor Enterprise (assigned by VHB, SAB and Kalyani). It is agreed that the implementors would carry out the project at their cost and keep it for 30 years to collect toll. Five townships are to be created by NICE to support revenue. Government is to acquire 20,193 acres of land and amend laws to enable execution of project

Nov 1997: PIL challenges deal in HC; plea dismissed

March 1999: SC too dismisses plea against pact

1999: Land owners approach HC over land acquisition for project. Single judge says only 60 per cent of 20,193 acres needed for the project

1999: Congress’s S M Krishna comes to power. Files appeals against single-judge order

2002: Real estate prices start climbing in Bangalore

Nov-Dec 2003: H D Deve Gowda starts a campaign against NICE, says project land is being sold by company in connivance with Congress leaders

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May 2004: Polls held. JD(S), Congress tie up to form government, Gowda is kingmaker

July 2004: Gowda writes a letter to minister and second son H D Revanna alleging irregularities in BMIC. Government turns against project, sets up committee to probe “excess” land acquisition. More PILs filed, one against and two for the project

Jan 2005: HC allows NICE appeal on land requirement and restores acquisition to the original 20,193 acres, saying it is for public purpose May 2005: HC asks Government to execute the project forthwith as “conceived originally”. Quashes committee set up to probe land acquisition

Jan 2006: Congress, JD(S) fall out. JD(S) allies with BJP, Gowda’s son H D Kumaraswamy takes over as CM

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April 2006: SC upholds HC order, says BMIC is in “larger public interest of the state”

June 2006: Kumaraswamy Government drafts Bill to take over BMIC project, but as BJP puts its foot down, JD(S) backs out

June 2006: Works begin on a small, 9-km portion of the 42-km first phase of the project

August 2006-June 2007: Government refuses to hand over land for the project, leading to a contempt plea by NICE in SC. State government orders another probe into land acquisition; begins process for setting up own township

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June 2007: In an additional affidavit in the SC, the Karnataka Government says a new consortium has proposed to take over the project from NICE, and it would return “excess” land acquired and provide additional facilities like a monorail link

August 2007: The Government decides to annul the August 2002 agreement with NICE allowing transfer of land to the company. NICE threatens to take issue to SC

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