Budget 2011-12




  Hon’ble Speaker,

       1.  Now I take up Part II which includes other sectors and taxation proposals for the year.

Economic Conditions

       2.  The Budget 2010-11 was presented against a backdrop of an improving economy which had been severely affected by the global economic slowdown.  Although economic indicators had started showing some improvement, the economy was yet to regain its high growth potential. Further, there were concerns about high unemployment levels, growing fiscal deficits, credit recession to productive sectors and reversal of capital flows.

       3.  In the last one year the economy has rebounded well to a high growth path of close to 9 per cent per annum. The downside risks to growth have certainly receded. The private consumption expenditure and gross capital formation are also showing strong acceleration, which is reflected in high growth of tax collections. The economic condition appears to be stable in the short to medium term. 

        4.  However, unacceptably high general inflation of over 8 per cent and food inflation of over 13 per cent have severely affected the common man, eroding the incomes significantly and thereby depriving him of the benefits of growth.  Inflation with high upside risks is the biggest challenge for the economy today. I would urge the Government of India to take specific steps in the Union Budget to counter inflation. In addition, it should also be ensured that the monetary policy measures do not adversely affect prices and flow of credit to farmers and weaker sections of society.

       5.  For mitigating hardship of inflation faced by the poor,          the State Government has suggested to the Government of India to expand coverage and enhancement of social security pensions under the National Social Assistance Programme.

State’s Economy

       6.  The State’s economy is gaining momentum and expected to grow at 8.2 per cent in real terms in Gross State Domestic Product during 2010-11 as compared to the previous year. The economic growth was 3.7 per cent in 2008-09 due to the economic slowdown, and improved to 5.2 per cent in 2009-10. The growth has been revived considerably during 2010-11. This is due to increased production of food grains and higher contribution from manufacturing and service sectors. The State Government has continued its focused efforts to achieve expectations of the XI Plan.

       7.  Gross State Domestic Product at current prices is expected to grow at 16 per cent and reach Rs.3,97,938 crore in 2010-11 over  Rs.3,43,010 crore in 2009-10. The growth rates of agriculture and allied, industry and services sectors in nominal terms are likely to be 14.7, 10.9 and 19.2 per cent respectively. In real terms, these are likely to be 5.9, 6.7, and 9.7 per cent respectively, with a cumulative growth of 8.2%.

       8.  The per capita income i.e., per capita Net State Domestic Product was Rs.51,858 in 2009-10.  I am happy to share with this House that it is expected to grow at a rate of 15.7% to reach Rs. 60,000 in 2010-11.

State’s Fiscal Position

       9.  I assure this august House that the fiscal position of the Government of Karnataka is sound.  The State Government is committed to improve tax administration, and maximize developmental expenditure while maintaining sustainability of public debt. 

     10.  Information on Fiscal Position: I take this opportunity to dispel doubts raised by some of the Hon’ble Members about fiscal health of the State Government. Perhaps their apprehensions are due to a lack of full information. I propose that fiscal position of the Government will be disclosed henceforth on a quarterly basis on the website of Finance Department www.kar.nic.in/finance, so that the wrong perception arising due to a lack of timely information can be corrected.

     11.  The State Government has been successfully making one of the highest tax efforts in the country. This fact has been acknowledged by several organizations including the Reserve Bank of India. As per the latest estimates, the tax effort represented by the tax collection as a percentage of GSDP which was 8.9 per cent during 2009-10, is likely to reach 9.6 per cent during 2010-11. This performance has been possible as a result of better enforcement, focus on collection efficiency, and continuous review and monitoring.

     12.  The Thirteenth Finance Commission has laid down a road map of reducing the debt to GSDP ratio for Karnataka to 25.2 per cent by the year 2014‑15.  Hon’ble Members may recall that the consolidated debt of the State Government was very high at 35.4 per cent of GSDP in 2003-04. At the end of 2009-10 the consolidated debt has been brought down to 25.8 per cent. The State is well advanced on the road map suggested by the Thirteenth Finance Commission.

      13.  Another important indicator of financial position of the State Government is the ratio of interest payments to revenue receipts.  The Twelfth Finance Commission had suggested a ceiling of 15 per cent.  As per a recent report of the Comptroller and Auditor General on the State Finances, this ratio at 10.6 per cent in 2009-10 was well below the ceiling suggested by the Finance Commission. In 2010-11, this ratio is estimated to be 9.6 per cent, once again within the sustainability limit.

     14.  The State has an enviable track record of maintaining revenue surplus since 2006-07.  Even during the difficult years of 2008-09 and 2009-10, which had affected revenue collections of the State Government in line with the Central and other State Governments, the revenue surplus situation was maintained. 

     15.  The fiscal deficit has been kept below 3 per cent norm since 2006-07.  Only in the year 2009-10, a higher fiscal deficit amounting to 3.2 per cent was allowed on the advice of the Central Government to implement the economic stimulus measures. The Government is fully committed to maintain revenue surplus and contain the fiscal deficit within the norms of the Karnataka Fiscal Responsibility Act in future also.

     16.  A more detailed analysis of the fiscal position has been provided to the House in the Medium Term Fiscal Plan 2011-15.

Fiscal Performance during 2010-11

     17.  Tax collections have increased by 28.9 per cent during the first ten months of the current fiscal year to Rs.30,474 crore from   Rs.23,649 crore in the similar period in 2009-10. Total receipts including devolution and grants from the Government of India and borrowings are higher by 19 per cent. 

     18.  The non-plan expenditure has been well regulated to increase by 7.7 per cent only in the first ten months. As a result, a larger plan spending has been ensured. The plan expenditure has increased by 16.1 per cent to Rs.16,499 crore in the first ten months of 2010-11 from Rs.14,211 crore in the similar period in 2009-10. I am confident that the overall annual plan targets will be achieved. 

Sectoral Outlays

     19.  This budget facilitates a total expenditure of Rs..85,319 crore on various development activities and regulatory functions of the Government, which is an increase of 21.7 per cent over the budget of Rs.70,063 crore in 2010-11.  Major sector-wise allocations are shown at Annexure 1.

State Plan Outlay

     20.  The State Plan outlay for 2011-12 has been kept at Rs.38,070 crore. This will be an increase of 23% from the outlay for the current financial year. With the proposed plan outlay, the overall plan achievement during the Eleventh Five Year Plan period is expected to be around 112% of the originally estimated plan size in real terms.

     21.  The State has been achieving an average growth rate of 20 per cent per annum in its State Plan performance during the last 3 years. I am confident to maintain this track record. It may also be noted that the per capita annual state plan expenditure in Karnataka which was Rs.2,149 in 2004‑05, would be Rs.6,362 in 2011-12. 

     22.  In 2006-07 when I presented my first budget, the per capita plan expenditure was Rs.3,232. After five years, when I am presenting my sixth budget for the year 2011-12, the State’s per capita plan expenditure has doubled. As has been the achievement in the last few years, it may be noted that among all the states, our per capita plan expenditure is the highest. When compared to the per capita plan expenditure of Rs.3,186 of all the states in the country in 2009‑10, our State’s achievement is Rs.4,602.


     23.  Infrastructure has to play the decisive role for the State to realize its growth potential. The Government has identified gaps in various sectors of infrastructure, such as urban transport, railways, ports, airports, energy, agri-infrastructure, and industrial infrastructure. Ninety-one projects with a total investment outlay of Rs.67,792 crore are being pursued through Public Private Partnership mode. The Government is following a strategy for infrastructure development that is sustainable, both environmentally and economically, and is equitable and inclusive. The following are some of the major initiatives.

     24.  The State Government is contributing 50 per cent of the cost of 16 railway projects of both new lines and gauge conversion. During the past three years, the following railway projects in the State have been completed for which the State Government has provided its share of   Rs.487 crore.

          ·   Sholapur - Gadag

          ·   Kottur - Harihara

          ·   Shimoga – Talaguppa

     25.  During 2011-12, an outlay of Rs.478 crore has been provided to meet the State Government share, mainly for ongoing rail works as well as newly sanctioned works.

     26.  The State Government is also sharing the cost of RUB/ROB projects for which an outlay of Rs.30 crore has been provided.

     27.  The airports at Bellary, Gulbarga, Shimoga, Bijapur and Hassan are being undertaken through PPP mode. Land acquisition for expansion of Hubli airport is in progress and is expected to be completed in the year 2011-12. An amount of Rs.120 crore has been provided for development of various airports.

     28.  An amount of Rs.15 crore would be provided in the year 2011‑12 for development of Mangalore Airport.

     29.  The Asian Development Bank has approved financing of Sustainable Coastal Protection and Management Project at a total cost of Rs.941 crore. It is proposed to commence Phase-I involving anti sea erosion works at a cost of Rs.350 crore at Ullal during 2011-12. Such a huge project has not been taken up in the State earlier.

     30.  An outer harbour will be built on Kerala model at a cost of Rs.45 crore at Marvanthe in Kundapur Taluk.


     31.  Energy consumption in the State has increased from 36,118 million units in 2009-10 to 39,774 million units in 2010‑11.  In the current year the peak electricity consumption per day has increased to over 160 million units. For ensuring adequate supply to the consumers, the ESCOMs have purchased 31.2 million units from private producers on short term basis. The State Government plans to increase the annual per capita availability of electricity from 680 units to 1000 units within a three-year period.

     32.  The first 600 MW unit of Udupi Power Corporation Ltd became operational in 2010.  Work orders have been issued for the power projects at Yeramus, Edlapura and Bellary with a cumulative installed capacity of 3150 MW. The State Government has requested the Central Government to provide early coal linkages for these plants. Action has been taken to build power plants at Kudigi, Jewargi, and in Chattisgarh with a total installed capacity of 6900 MW. Land acquisition for Kudigi and Jewargi projects is in progress.  The distribution companies have signed agreements to purchase power from Kudigi Power Project.

     33.  In respect of the Chattisgarh power plant of 1600 MW capacity, final notification has already been issued for a acquiring 1260 acres of land.  An amount of Rs.141 crore has been paid for this.

     34.  The Central Government has not been providing coal linkages for new projects to the State of Karnataka. Therefore, to enable the State to produce 7340 MW of power, I request the Central Government to consider all our pending requests for providing coal linkages., The State Government is also exploring the possibility of importing coal and partnering in Joint Ventures to invest in equity in coal mines of other States as well as other countries so as to ensure availability of power needed for the State.  Steps have been taken to purchase power from private power producers to meet shortages.

     35.  The Government has also initiated steps to facilitate GAIL in laying an LNG pipeline from Dabhol to Bidadi.  KSIIDC and GAIL have agreed to form a joint venture company to develop a city gas distribution network for Bangalore.

     36.  An outlay of Rs.500 crore as equity support to the ESCOMs is being made for separation of the electricity feeders under Niranthara Jyothi project. This project is scheduled to be completed by September 2012.

     37.  The total outlay of the energy sector has been increased from Rs.6,245 crore in 2010-11 to Rs.8,523 crore in 2011-12.


     38.  The State has a major challenge to develop and maintain a road network of adequate capacity and quality. During the past five years, 28,059 km of road renewal and 8900 km of road upgradation & widening has been completed. Projects for development of 4000 km of roads are  in progress.

     39.  The State Government has recently obtained a loan approval from the Asian Development Bank to develop 600 km of state highways at an estimate of Rs.1330 crore  in the following 9 packages.


  Pavagada-AP Border.


   Jagalur NH 13-SH 19

   Padubidri - Karkala.

   Davanagere - Birur.

   Shelvadi - Mundargi.

   Mudgal - Gangawati.

    Soundatti - Kamatagi.

   40.  The World Bank has also conveyed its concurrence to finance development of 269 km of state highways in the following 5 packages at an estimate of Rs.657 crore. The work for all these  packages is likely to commence in 2011-12.

          Hoskote - Chintmani Bypass.

          Haveri - Tadas.

          Dharwad - Saundatti.

          Tinthani - Kalmala.

          Chowdapura - Gulbarga.

   41.  Under Public Private Partnership, the following four roads are being taken up at an estimate of Rs.1,523  crore.

             Malavalli - Pavagada.

              Mudhol - Nippani.

              Shimoga - Hangal.

              Managuli - Devapur.

   42.  17 new road works of 702 km and 20 new bridges will be taken up through KRDCL at an estimate of Rs.1692 crore.

     43.  Rs.100 crore would be provided for development of ring road in Shimoga.

     44.  An amount of Rs.35 crore will be provided to develop the roads from Shimoga Airport to Sringeri and up to Rambapuri.

     45.  An amount of Rs.50 crore will be provided for development of roads in Kodagu District.

     46.  A special institution will be set up to mobilize resources for comprehensive development of roads in the state.

Urban Infrastructure

     47.  There is a need to give special attention to development, operation and maintenance of urban infrastructure in view of the rapid increase in urban population. The required government funding has to be supplemented with private capital, user charges, and funding from financial institutions. Currently four major projects financed by the external funding agencies at a total investment of Rs.7,500 crore are being implemented.   These projects include investment of around Rs. 4,500 crore in Bangalore and Rs.2,000 crore in cities and towns of north Karnataka. Funds are also being raised by the KUIDFC through tax free municipal bonds and direct borrowing from the market.

     48.  Mukhya Mantri Nagarothana Yojane: Under this scheme Rs.1,013 crore has been utilized in the past three years by the urban local bodies to develop urban infrastructure.  The development package of Rs.100 crore given to each municipal corporation in 2008-09 has been largely implemented. Tumkur city has also been given a similar package in 2010-11.  It is expected that the packages given to other urban local bodies in 2009-10 involving investment of Rs.1,400 crore over a three year period will be completed during 2011-12.  The outlay for this scheme has been increased to Rs.750 crore in 2011-12.

     49.  In the towns of Chikkodi and Channapatna, drinking water supply schemes would be taken up.

     50.  In order to provide a comfortable, convenient, fast and affordable mode of transport to the citizens, a combination of mass transit systems needs to be established.  KSRTC has been operating an extensive transport system efficiently in Mysore city. The economic and technical feasibility of establishing Bus Rapid Transit Systems in the cities of Hubli Dharwad and Mysore at a total investment of more than Rs.500 crore would be examined and necessary action would be taken.  

     51.  Urban Transport Fund:  A state-level Urban Transport Fund will be constituted with an annual contribution of Rs.60 crore to fund the urban transport initiatives. Annual accrual to this fund will come through Rs.20 crore each from the budgetary sources, a cess on local taxes collected by Urban Local Bodies and a cess on Motor Vehicle Taxes. 

     52.  Development of Bangalore City: With a population of nearly 8 million, Bangalore is one of the fastest growing cities in Asia. Urbanisation has brought with it problems of traffic and congestion. It remains the endeavour of the government to improve transport infrastructure in Bangalore and provide a better quality of life.

     53.  Bangalore Metro: Phase-I of the prestigious Bangalore Metro Project with a length of 42.3 kms would be completed by June 2013. As promised, Reach 1 from Byappanahalli to MG Road would be opened for commercial operations on April 4th this year. The State has already released more than Rs.2600 crore as financial support to this project. Phase-II of Bangalore Metro of 6 lines covering a distance of about 71 kms has been approved in principle by the Government. For completion of Phase-I Metro, Rs.683 crore has been provided during 2011-12.

     54.  DPR is being prepared for Mono Rail or Light Rail Transport system for two corridors in Bangalore city, with 31 km from Hebbal to J.P.Nagar and 9 km Peripheral Ring Road to Toll Gate along Magadi Road.

     55.  The Comprehensive Traffic and Transportation Plan for Bangalore has identified the need to take up commuter rail system within the city. The Government has sought permission of the Ministry of Railways for undertaking commuter rail service from Bangalore to Devanahalli, Anekal, Malur, Ramnagara, Nelamangala and beyond, so that persons living on the outskirts of Bangalore would be able to access the Central Business District of Bangalore within a short time. The State would provide its contribution.

     56.  BMTC has been operating a successful and efficient public transport system, which has few parallels in the country. However, the travel speed due to limited road infrastructure is a major challenge.  For providing a sustainable and alternate transport solution to the residents of Bangalore, I am happy to announce that a new project of BRTS is being considered from Hebbal to Central Silk Board at a total cost of Rs.550 crore.  The Government will provide Rs.25 crore in 2011-12 to initiate this project.

     57.  BWSSB has been implementing the Cauvery Water Supply Scheme Stage IV Phase‑II at a total project cost of Rs.3,384 crore. On completion, 500 MLD water would be made available to more than 12 lakh people by March 2012. It would cover additional 7 CMCs, 1 TMC and 110 villages. An amount of Rs.1,150 crore has been provided in the budget for the BWSSB  to complete this project.

     58.  Our government would provide Rs.350 crore to Bruhat Bangalore Mahanagara Palike during 2011-12 to initiate the following projects:

                 Elevated road from Minerva Circle to Hudson Circle via J.C Road;

                 Flyovers and underpass on Chord road, Fountain Circle, Kanakapura – Outer Ring Road junction and Kittur Rani Chennamma Circle;

                 10 vehicle parking lots;

                 Infrastructure for solid waste disposal.

     59.  Bangalore Development Authority would take up a number of development works in 2011-12 at an estimate of Rs.750 crore. Kempegowda Layout, Arkavathy Layout & Dr.Shivarama Karanth Layouts would be formed and sites and houses would be distributed. The Government has given approval to form Shri D.Devaraj Urs Layout, Shri Nijalingappa Layout and Shri K.C.Reddy Layout. 30,000 houses will be built and distributed to economically weaker sections. 29 lakes will be rejuvenated and developed. Along with this, 12 parks and entertainment centres will be developed. In 8 acres of area, a sculpture park would be built, which would be the first of its kind in the country.

     60.  Though Bangalore is the IT/BT capital and also known as the Silicon Valley of India, it does not have adequate facilities for organizing international conferences.  It has therefore been proposed to establish an International Convention Centre in collaboration with KIADB near the Bangalore Airport in the next 15 months with an investment of Rs.150 crore. 

     61.  A Business Park spread over 230 acres is being taken up at Devanahalli through PPP mode with an investment of more than Rs.5,000 crore.

     62.  In view of the increasing population and habitations in Bangalore, four modern super speciality hospitals in four directions of the city  will be built in public private partnership.

     63.  A Project Monitoring Unit will be established in the BBMP office for preparing plans and designs, and also to improve efficiency and transparency.

     64.  Thus for the over all development of Bangalore, an amount of about Rs.4770 crore would be spent through various sources.  This would help in providing adequate infrastructure for the growth and development of the city. 

Rural Development

     65.  The outlay for the rural development is being increased to Rs.4,385 crore in this budget. This outlay will complement grants from the Government of India for various schemes for drinking water, employment generation, etc. As a result, the total outlay for rural development in the coming year is likely to exceed Rs.8,500 crore. Allocations of Rs.1000 crore for rural roads and Rs.1,250 crore for drinking water  have been proposed in 2011-12.

     66.  Suvarna Gramodaya Yojane is being implemented successfully for improving infrastructure facilities in villages.  Under this scheme so far, an amount of Rs.1061 crore has been spent.  In a total of 1,121 villages road and drain improvement works have been completed.  During the year 2010-11, an amount of Rs.250 crore has already been spent.  The scheme will be continued in 2011-12 and an amount of  Rs.400 crore will be provided.

     67.  Under PMGSY in 2010-11, 1,294 kms of roads have been completed, utilizing Rs.655 crore.

     68.  In order to uniformly develop rural roads of the State, the Government has decided to develop 20 kms of roads in each of the State’s 189 Assembly constituencies.

     69.  A one time grant of Rs.1 crore would be provided to establish a Panchayat Raj Chair in the name of Abdul Nazeer Sab at the Centre for Multi Disciplinary Research, Dharwad, 

     70.  Asare: It is a matter of great satisfaction for me to inform about the success achieved under the Asare programme of rehabilitating flood-affected villages.  Under this programme 5,610 acres of land has been acquired for rehabilitation of 297 villages. Out of a total of 57,675 houses, construction of 47,626 houses is in progress.  Out of this, 15,800 houses have been completed.  A total of 32,400 houses would be completed by March 2011.  The remaining houses would be completed by May 2011. An amount of Rs.170 crore will be spent for providing infrastructure to these villages, of which Rs.50 crore has already been released.

     71.  On account of reserving 50% of seats in all Panchayat Raj Institutions, women can now play an important role in decision making in the coming days.  For the Adhyaksha, Upadhyaksha and Members of Zilla Pachayats the honorarium would be increased to Rs 3000, Rs 2250 and Rs.1500 respectively. A similar increase will be made in respect of Taluk Panchayat Adhyaksha, Upadhyaksha and Members. Their honorarium would be increased to Rs.2250, Rs.1500 & Rs.750 respectively.

Third State Finance Commission:

     72.  The financial recommendations of the Third State Finance Commission have been considered while formulating this budget. I am happy to announce that the devolution of funds to the local bodies will be increased to 42% of the Non Loan Net Own Revenue Receipts (NLNORR) of the State. This devolution will be inclusive of the provisions for salary and other expenses of the Panchayat Raj Institutions and the Urban Local Bodies.  Considering the overall development needs of the State, the target of 42% devolution will be achieved in a phased manner over the award period.

     73.  The share of the urban local bodies is being increased from the current 8% to 8.5% of NLNORR during 2011-12. The grant being given to Grama Panchayats is being increased from Rs.6 lakh to Rs.8 lakh per annum. Every year an untied grant of Rs.1 crore per Taluk Panchayat would be provided.

Area Devolopment

74. Government has been providing funds under the Special Development Plan based on the report of Dr.Nanjundappa Committee.  In the last three years a total of Rs.4,605 crore has been spent.  A provision of Rs.2,975 crore will be made in 2011-12. 

     75.  Keeping regional disparities of the State in mind, the Government has been giving special emphasis to development of specific areas also.  During 2010-11, Rs.63 crores has been provided;  this provision is being increased to Rs.114 crores in 2011-12. Out of this, Hyderabad Karnataka Area Development Board will be provided Rs.45 crore, Malnad Area Development Board will be provided Rs.34 crore, Karnataka Border Area Development Authority would be provided Rs.15 crores. Maidan Area Development Board will be provided Rs.10 crore and Karavali Area Development Authority will be provided Rs.10 crore. 

     76.  The Government has released an amount of Rs.794 crore for the Legislators’ Constituency Development Programme during the last three years.  A provision of Rs.300 crore has been made for this purpose in 2011-12.  

     77.  A special grant of Rs.50 crore each would be provided to  the newly formed districts of Yadgir and Chickballapur for taking up infrastructure development works.

78. An amount of Rs.10 crore will be provided for development of road to Anjanapura Reservoir in Shimoga and improvement of garden and  creation of boating facility.

Primary and Secondary education

     79.  An outlay of Rs.900 crore has been made for Sarva Shiksha Abhiyan in 2011-12.  The State Government has provided Rs.394 crore to supplement the central grants for this programme.

     80.  In view of the popularity and good outcomes of Nali-Kali, this scheme has been extended to cover students of 3rd Standard also. 7 lakh children in the State will be benefiting from this scheme. 2.65 lakh teachers have been given residential training under the scheme.

     81.  Under the Rastriya Madhyamika Shikshana Yojana started in 2010-11, 74 model schools have been established. State Government will provide 25% of its share to this scheme.  A sum of Rs. 50 crore would be provided in the year 2011-12.

     82.  Under the popular, effective and useful bicycle scheme, during 2009-10, 5.32 lakh students have been given bicycles.  In the coming financial year about 12 lakh students would be provided bicycles pertaining to the period 2010-11 and 2011-12.   Rs.250 crore  will be provided during the year 2011-12 for this.

     83.  At present free text books are being provided to the students of 1st to 8th Class studying in both government and aided schools. During the year 2011-12 free text books will be supplied to students of 9th and 10th Class also.   

     84.  People from rural areas have complained that income certificate is being insisted upon at the time of admitting their children to Government primary schools.  Therefore from the year 2011-12 onwards this condition of income certificate would be dispensed with.

     85.  A new scheme for adult literacy called Sakshara Bharath has been started. This programme is being implemented in 20 districts including 11 districts of north Karnataka.  In this programme a total of 40 lakh non-literates including females of 15 years and above in rural areas would benefit. Priority is accorded to scheduled castes, schedule tribes, minorities and other backward classes.  A provision of Rs.5 crore as State share is made for 2011‑12.

     86.  Since the activities of Bharat Scouts and Guides are conducted at the high school level, this subject will be transferred to the Department of Primary and Secondary Education.  An amount of Rs.4 crore will be given for constructing Scouts Bhavan in Bangalore and to provide uniform of scouts and guides for the poor children.

     87.  The total outlay for the primary and secondary education has been increased from Rs.8,830 crore in 2010-11 to Rs. 10,281 crore in 2011-12.

Higher Education

     88.  A post graduate centre at Kushalanagar under Mangalore University would be set up during 2011-12, for which Rs.5 crore has been provided. For imparting specialized training in Music and Art, Music University, Janapada University and Lalithakala University have also been established. In 2011-12, Rs.10 crore would be provided for their development.

     89.  Karnataka Knowledge Commission: Headed by the eminent space scientist Dr.K.Kasturirangan who is also a  Member of the Planning Commission, the Karnataka Knowledge Commission is working with a mandate to transform Karnataka into a vibrant knowledge society.  The Commission has given several recommendations in the focus areas of literacy and school education, higher education, vocational education, humanities and management, health services and knowledge networks.  An amount of Rs.10 crore will be provided for implementing the projects recommended by the Knowledge Commission.

     90.  The outlay for Higher Education has been enhanced from Rs.1,676 crore in 2010-11 to Rs.2,002 crore in 2011-12.

Health and Family Welfare

     91.  The Government has assigned a very high importance to provision of universal access to affordable and quality health care. Innovative schemes like Prasoothi Araiyke and Thayi Bhagya have been instrumental in increasing institutional deliveries from 73% in 2007-08 to 93.3% in 2010-11. During 2010-11 more than 2 lakh Madilu kits have been distributed to pregnant women from BPL category. Over 27,945 BPL category women have received free treatment under Thayi Bhagya. Under the School Health programme, in the first three quarters of 2010-11, 84.54 lakh students received free medical check up.

     92.  I am happy to share with you that as a result of our programmes, the Infant Mortality Rate in the State has come down from 45 in 2008 to 41 per 1000 live births in 2009. The Maternal Mortality Rate too has decreased from 228 to 213 for 1 lakh live births. In 2011-12 an allocation of Rs.­­­­­86 crore is provided for continuing these schemes.

     93.  As announced in the last Budget Speech, the Vajpayee Arogyashree Yojane was launched in Gulbarga Division to provide medical treatment coverage to BPL families. This scheme has already been extended to cover Belgaum division. In 13 districts of Gulbarga and Belgaum divisions, so far 5690 beneficiaries have availed treatment at a cost of Rs.33.49 crore.  A provision of Rs.40 crore has been made for this scheme during

     94.  Over the years, we have focused on improving health infrastructure in the State. Out of 2310 PHCs, 988 are running on 24X7 basis. A total of 149 First Referral Units, 95 Mobile Health Units and 37 Citizen Help Desks in Hospitals have been functioning.

     95.  The scheme of Arogya Kavacha (108) has been very successful in the last two years in providing life-support even to the remote areas of Karnataka.  As many as 9.35 lakh patients have been given timely medical care and treatment. Out of these, 42% were maternity related cases.

     96.  Under the Arogyabandhu scheme of the Department of Health & Family Welfare, a total of 56 Primary Health Centres in the State are already being managed by various organizations under PPP.  This scheme will be further extended to all urban and rural areas of this state, giving priority to the experienced and specialized institutions so that medical assistance can be provided to the people.

     97.  I propose to set apart a sum of Rs.2 crore for treatment of opportunistic infections of all the HIV infected persons in the high prevalent districts of Bagalkot, Bijapur and Belgaum and all the HIV infected children in the State. Health and Family Welfare Department will formulate the necessary scheme.

     98.  The outlay for Health and Family Welfare has been increased from Rs. 1,935 crore in 2010-11  to Rs.2,428 crore in 2011-12.

Medical Education

     99.  The total annual intake of undergraduate courses in four government medical colleges at Bangalore, Mysore, Bellary and Hubli have been increased from 500 to 800 seats. Simultaneously proposal is also being made to the Medical Council of India for increasing the number of PG seats. With these additional seats, along with the 600 MBBS seats in the newly started six government medical colleges, the availability of qualified medical doctors will increase considerably.

   100.  An amount of Rs.5 crore will be provided to upgrade the Rajiv Gandhi Chest Institute as a national institute. To provide specialised health care services to senior citizens and to take up research activities a ‘Geriatric Institute’ at an estimate of Rs.5 crore would be established in the premises of Rajiv Gandhi Chest Institute.  Karnataka Institute of Diabetology is developing as a unique centre for comprehensive treatment and care of diabetic people. An amount of Rs 5 crore will be provided for strengthening the institute. For upgradation of Dharwad Mental Health and Neuro Sciences Institute, Rs 5 crore would be provided.

   101.  Hrudaya Sanjeevani Scheme is being implemented successfully by Sri Jayadeva Institute of Cardiovascular Sciences and Research. During the current year, 992 poor patients have already been treated. An amount of Rs.5 crore will be provided to continue this scheme. 

   102.  An amount of Rs.25 crore will be provided to the Karnataka Institute of Medical Sciences, Hubli.

   103.  Ayush: World Ayurveda Conference was held successfully this year in Bangalore. With a view to encourage study of Ayurveda, it is proposed to start an Ayurveda college in Shimoga in 2011-12.  An amount of Rs.10 crore will be provided for this.

   104.  During 2010-11, more than 45,000 patients were treated in Ayush hospitals and clinics. In all district hospitals Ayush units would be started.  For this purpose Rs.5 crore would be provided.  In Ayush Hospitals and in other places, Wellness Centres would be established on Public Private Partnership basis. 

   105.  In order to provide preventive, holistic and lifestyle management practices, a new scheme called ‘Ayush Grama’ would be taken up on PPP model in one Gram Panchayat each in 10 taluks on pilot basis.

   106.  The outlay for the Medical Education has been increased from Rs. 723 crore in 2010-11 to Rs.826  crore in 2011-12.

Social Welfare

   107.  Inclusive growth requires that all the social groups have equitable access to services provided by the State and get ample opportunity for economic and social mobility. Through targeted beneficiary oriented schemes, my Government is trying to achieve the goal of inclusive growth.

   108.  There has been a considerable increase in the allocations for SCP and TSP during the last two years. An amount of Rs.2,917 crore and Rs.1,144 crore during 2009-10 and Rs.3,359 crore and Rs.1,344 crore during 2010-11 were provided for SCP and TSP respectively. The allocation has been increased to Rs.4,633 crore and Rs.1,867 crore during 2011-12.

   109.  The pooled funds provided for SCP and TSP during 2009-10 was Rs.600 crore, which was increased to Rs.800 crore during 2010-11. The allocation of pooled funds compared to 2010-11 has been increased to Rs.1000  crore during 2011-12.

   110.  Under the scheme for short term credit, at present a sum of Rs.5,000 is being given as loan and subsidy. This will be increased to Rs.10,000 (Rs.5,000 loan and Rs.5,000 subsidy). An amount of Rs.10 crore will be provided for this scheme.

   111.  Financial assistance of Rs.10,000 being given for self employment will be increased to Rs.25,000. An amount of Rs.12 crore is provided for this purpose.

   112.  People living in Scheduled Caste and Scheduled Tribe colonies have been experiencing difficulty because of a lack of basic infrastructure facilities.  In order to develop these colonies, an amount of Rs.300 crore will be provided at the rate of Rs.1 crore for every such SC/ST colony.

   113.  During 2009-10 financial assistance was provided to 24.26 lakh beneficiaries including Scholarships to Schedule castes. Financial assistance is provided to 28.02 lakh beneficiaries during 2010-11. During 2009-10 financial assistance was provided to 10.78 lakh beneficiaries including scholarships to Scheduled Tribes. Financial assistance has been provided to 9.09 lakh beneficiaries during 2010-11.

   114.  There are 1763 hostels for the Scheduled Caste students, with facility for 1.61 lakh students and 308 hostels for the Scheduled Tribes with facility for 27,000 students.

   115.  Food allowance was increased to Rs.650 for the pre-matric students and to Rs.750 for post-matric students during 2010-11. This will be increased from Rs.650 to Rs.750 for pre-matric students and from Rs.750 to Rs.850 for post-matric students during

   116.  Annual Scholarship for the students, up to VII standard who are not residing in hostels will be increased from Rs.75 to Rs.250 and for those who are studying in VIII to X standards from Rs.100 to 500. This will benefit 25 lakh students.

   117.  An amount of Rs.30 crore is provided for giving Training in Nursing, Para Medical, ITI and other Technical skills to the Scheduled Castes, Scheduled Tribes and Backward Classes boys and girls. 30,000 students would be benefited from this.

   118.  During the last two years 15 Morarji Desai Residential Schools and 50 Hostels have been completed for Scheduled Castes and Scheduled Tribes. So far an amount of Rs.142 crore has been released during this year for construction of Morarji Desai Residential Schools and hostels. An amount of Rs.150 crore will be provided during 2011-12 for construction of Morarji Desai Residential Schools and hostels which have earlier been sanctioned.

   119.  Development of Backward Classes: An amount of Rs.606 crore was provided during 2010-11 for the Development of Backward Classes, and this allocation has been increased to Rs.760 crore during 2011-12.

   120.  An amount of Rs.5 crore will be provided for establishing a ‘Gurupeetha’ for Ganiga Community. For Valkimi Bhavans Rs.5 crore will be provided. Tigalara community would be provided Rs.1 crore. Apart from this an amount of Rs.25 crore will be provided for the development of different communities.

   121.  A comprehensive development plan will be taken up for the benefit of Nomadic and Semi Nomadic Tribes. An amount of Rs.5 crore is provided for this purpose.

   122.  11 Model Hostels were started in 11 districts during the year 2010-11. It is proposed to establish 19 more Model Hostels in the remaining 19 districts. Rs.38 crore will be provided for this purpose.

   123.  An amount of Rs.5 crore is provided for giving training to candidates from the Backward Classes in Nursing, Para-Medical and other courses.

   124.  Minority Welfare: The Government is committed to the welfare of the Minorities in the State. An amount of Rs.97 crore was provided during
2007-08 for development of minorities. Action has been taken to increase the allocation gradually after our government came to power. During 2010-11 an amount of Rs.207 crore was provided. During 2011-12,  Rs.326  crore is provided for development of minorities.

   125.  Apart from providing Scholarships and hostel facilities to the students from the minority community students, loans and subsidy are also being provided for the development programmes such as purchase of land, providing irrigation facilities, starting sustainable business etc. During the current year an amount of Rs.60 crore is being spent for providing assistance to more than 32,000 beneficiaries.

   126.  Government has also released more than Rs.16 crore for construction and renovation of Wakf Board buildings. The required land has already been acquired for the construction of Haj mahal in Bangalore. Rs.5 crore will be provided for construction of the building.

   127.  An amount of Rs.50 crore has been provided in the Budget for taking up development schemes related to the Christian community. Such an allocation has been made for the first time in the State Budget.

Women and Child Development

   128.  Under Bhagyalakshmi Scheme so far 11,39,697 girl children of our state have been identified and 8,95,133 bonds have been distributed at an expenditure of Rs.1140 crore. Rs.400 crore will be provided during 2011-12 for distribution of bonds to the remaining 2,44,564 beneficiaries.

   129.  Sarees have been distributed to the mothers of the beneficiaries under Bhagyalakshmi Scheme. Free health check up was organized for the girl children. Since this programme has been successful it will be continued in 2011-12 also.

   130.  Anganawadi Workers and Assistants are performing a vital role in the important development schemes of mother and child health care and supply of nutrition. Considering their contribution, the honorarium of Anganawadi workers and helpers was increased to Rs.2500, and Rs.1250 respectively during the year 2009-10. A Contributory Pension System, has been introduced for them during the year 2010-11, Anganawadi workers and helpers in the age group of 18 and 55 years will be brought under this system. Government will provide a matching monthly contribution of Rs.150 for every anganwadi worker and Rs.75 for every assistant.  For those who are above 55 years of age,  Government will give a total amount of Rs.50,000 to the Anganwadi workers and Rs.30,000 to the Anganwadi helpers at the time of their retirement.

   131.  I propose to further increase the honorarium of Anganawadi workers from Rs.2,500 to Rs.3,000 and that of helpers from Rs.1,250 to Rs.1,500.

   132.  An amount of Rs.100 crore has been provided to complete the incomplete Anganawadi buildings and for maintenance works.

   133.  An amount of Rs.2 crore will be provided for forming 60,000 New Stree Shakthi Groups in all the 176 taluks with a membership of 12 lakh women and for providing revolving fund, kits and training.

   134.  Rs.5 Crore  has been provided for the Women Commission.

   135.  Rs.2 crore would be provided to State Women Development Corporation for providing short term loan on a daily or weekly basis through established service organizations to women street vendors. In the first phase, this programme would be started in the cities of Mysore and Shimoga.

   136.  For the handicapped persons Samarthanam institute’s school and hostel buildings.   Rs 1 crore would be provided as a grant.


   137.  Providing houses to the economically weaker sections of the Society is one of the priorities of my government. During the last three years Rajiv Gandhi Rural Housing Corporation Ltd., has built 9,07,630 houses for BPL families, Schedule Castes and Schedule Tribes. 3,32,972 houses were constructed in the early part of 2009-10 itself. The Corporation has targeted to build 3 lakh houses during 2011-12, and out of this 2 lakh houses will be constructed in the rural areas.

   138.  A scientific survey will be conducted in the State for identifying siteless families. On the basis of this survey, sites will be provided to such families over a period of time.

   139.  Nanna Mane Nanna Swathu: While lakhs of houses have been built and distributed to the poor, the ownership of those houses has not yet been transferred. This has hindered the process of availing institutional finance to further upgrade such houses.  It has therefore been decided to launch a scheme “Nanna Mane Nanna Swathu” in which ownership certificates will be given to the eligible beneficiaries. This scheme is expected to benefit 20 lakh families.

   140.  Availability of land has been a major issue while implementing housing schemes. It is therefore proposed to make a significant allocation of Rs.67 crore for land acquisition for housing projects.

   141.  Karnataka Housing Board will take up construction of a large number of affordable houses in all urban areas of the State from its own resources and also through public private partnership. Approval will be accorded expeditiously for such proposals and all co-operation will be provided by the Government.

   142.  Industrial Areas Housing Scheme: 30,000 houses and sheds will be built for the people working in industrial areas specially for weaker sections of the labour community and staff, skilled workers, artisans, and also 10,000 houses for the weighmen and hamalis working in agricultural markets. This will be taken up in association with the Karnataka Small Scale Industries Development Corporation.

   143.  Slum development: Under the Basic Services for Urban Poor (BSUP) programme, in the cities of Bangalore and Mysore, a total of 7383 houses have been completed at a cost of Rs.198 crore.  Under Integrated Housing & Slum Development Programme, 7378 houses were completed at a cost of Rs.179 crores.  Under Rajiv Awas Yojana, slum mapping has already commenced.  It is targeted to make Karnataka a slum free State by 2017.  An allocation of Rs.50 crore will be made during the year 2011-12 to provide infrastructure facilities in slums. 

Public Distribution System

   144.  In the public distribution system, more than 86 lakh families have been issued B.P.L. cards and they are being provided wheat and rice at the rate of Rs.3 per kg. About 1.36 lakh tons of rice and 44,000 tons of wheat is being distributed through public distribution system every month. An amount of Rs.950 crore has been provided by the State Government as subsidy during 2010-11.

   145.  Several complaints have been received that many of the BPL families have not been able to obtain ration cards, while a number of ineligible families have obtained the same. A special campaign has been taken up to identify such bogus ration cards and cancel them. Ration cards will be distributed to eligible beneficiaries.

   146.  It is proposed to modernize the Food and Civil Supplies Department by computerizing all operations relating to lifting, storage and distribution of food grains. All taluk level offices and godowns, will be provided with computers and internet facilities. The Food and Civil Supplies Corporation would provide computers to 100 out of the 193 godowns this year. Electronic weighbridges would be installed in 10 godowns this year at a cost of Rs.10 crore.

Commerce and Industries

   147.  The recently concluded Global Investors Meet was a phenomenal success. The Government signed an unprecedented 389 MoUs in 12 sectors with an expected investment of Rs.3.93 lakh crore and employment of 7.11 lakh persons. Subsequently another 368 new proposals were approved in the last six months with an investment of Rs 91,810 crore to generate employment to 2 lakh persons. Implementation of 215 projects with an investment of Rs 2.83 lakh crores has begun.  187 civil works have already commenced. Karnataka has also been considered as the most favoured destination for investment amongst 20 major states of India as per the recent ASSOCHAM investment assessment report.

   148.  In order to encourage entrepreneurship and also to provide more opportunities of employment, it is proposed to reserve some area in every Industrial Estate for development of small scale industries.

   149.  Rs.62 crore would be provided for establishment of new industrial clusters.

   150.  To mitigate the problems faced by weavers and to increase their income level, a new scheme of providing power-looms would be initiated this year. In the first phase it is proposed to provide 1500 weavers with 2 power-looms each. 50% grant would be provided to purchase power loom valued at Rs.1 lakh each. Rs.15 cr would be provided for this purpose.

   151.  Mysore Paper Mills has been one of the prestigious public sector undertakings of the State.  For the past several years, the industrial health of this unit has been going down on account of accumulated losses.  A comprehensive proposal to revive and revitalize Mysore Paper Mills is under preparation. An amount of Rs.100 crore required for this purpose would be mobilized.

   152.  There are 20 Government Tools and Training Centres (GTTCs) across the State. This year two new GTTCs would be established at Bijapur and Nelamanagala.


   153.  In order to protect the State’s mineral wealth from being illegally exported, the State Government took a bold decision to ban export of iron-ore from the state.  A clear message has been sent to the regulatory machinery that the government is determined to stop all kinds of illegal mining.  The efforts made by the State government have not only been upheld by the Courts, but also set the agenda in the discussions of the National Development Council on protecting national mineral wealth for value addition. The fact that many steel manufacturing companies have already presented their plans to establish steel plants in the state reflects the Government’s foresight on industrial development in Karnataka. 

   154.  “Karnataka (Prevention of Illegal Mining, Transportation and Storage of Minerals) Rules, 2011” have been framed to prevent illegal mining. Government has also initiated steps to computerize the entire mineral administration.  The total revenue earned in this financial year has already crossed Rs.900 crore and is likely to reach Rs.1100 crore which will be about 25% more than the last year.  This has been achieved through strict enforcement, computerization and continuous monitoring.    

   155.  New Sand Policy: Regulation of misuse of sand involves issues on extraction of sand, its sustainability of use and availability to the public at reasonable rates in spite of the increasing demand. For this purpose, the subject of sand mining has been entrusted to the Public Works Department. This will enable availability of sand to the common man at affordable prices and at the same time help in maintaining ecological balance.

Labour Welfare, Employment and Training

   156.  The Rasthtriya Swasthya Bima Yojana has been implemented in five pilot districts of Bangalore Rural, Belgaum, Dakshina Kannada, Mysore and Shimoga. The Scheme provides medical benefits for a family of five upto Rs 30,000 per annum. 1.61 lakh smart cards have been issued to BPL beneficiaries in these five districts. An outlay of Rs.30 crore has been provided for this scheme.

   157.  Karnataka is one among the very few states to implement NPS Lite Swavalamban Scheme for unorganized workers in private hotels, labourers, drivers of bus, taxi, lorry and auto rickshaws, workers in workshops,etc. In 2011-12, 4 lakh unorganized workers are expected to enroll under this scheme.  An amount of Rs.25 crore will be provided for the scheme. 

   158.  Karnataka is one of the few states to constitute a Skill Commission. 10 Skill and Job fairs and 54 mini job fairs were organized during 2010-11 in which more than 3.5 lakh youth have participated. Skill training has been provided for 94,071 candidates and 80,395 have been provided employment.

   159.  To implement Suvarna Vastra Neethi, Rs.25 Crore will be provided in the year 2011-12.There is a large requirement for skilled persons in the textile and apparel sector. Providing skill training to the youth including women and other disadvantaged sections of society will enable them to get gainful employment in the apparel sector. In this regard, Apparel Training and Design Centre has been imparting training to the youth in the State. In order to supplement the efforts of ATDCs, the State would sponsor candidates for the various training courses.

   160.  To generate employment opportunities in hospitals, nursing homes and diagnostic centres, medicial electronics trade would be introduced.

   161.  Auto Mechanic courses will be introduced in the ITIs.

   162.  Two Multi Skill Development Centers will be set up in Gulbarga and Bangalore at a cost of Rs.65 crore for which the State government will provide its share of Rs.32 crore.

   163.  There is no financial security for the families of private vehicle drivers such as those driving autorickshaws, bus, maxicab, lorry, taxi etc, when they meet with accident while driving. A new insurance scheme will be introduced for such vehicle drivers.


   164.  Our State is blessed with natural resources, ancient monuments, temples and art & culture. In 2010-11, Karnataka Tourism was adjudged as the most visible Indian tourism destination at over 8 leading international travel trade fairs. To take up new infrastructure works, an amount of Rs.50 crore will be provided during 2011-12.

   165.  In 2010-11, the Department took up eco tourism project at Jogimatti in Chitradurga district, beautification of Sadanakeri at Dharwad and creation of tourist facilities at Malpe, Marawante, St. Mary’s Island and Gokarna.

   166.  A theme park is proposed to be set up in Hampi to commemorate 500 years of coronation of Sri Krishna Devaraya of Vijayanagar Empire and to revive glory of Vijayanagar Empire. An amount of Rs.100 crore will be provided for this purpose. Apart from this, an amount of Rs.10 crores will be provided for the development of the city of Hampi. 

   167.  An allocation of Rs.250 Crore will be made during the year 2011-12 for Tourism.

Kannada and Culture

   168.  We will continue with our commitment to protect and support the Kannada language. The Department of Kannada and Culture has undertaken various activities last year. These include taking up maintenance of Gangubai Hanagal Music School at Hubli, construction of Mahatma Gandhi Smaraka at Kengeri, construction of Dr Pandit Putturaj Gawai Smaraka and activities of Rangayana.

   169.  To draw the attention of international tourists, a statue of Mother Bhuvaneshwari, a source of pride and love for Kannadigas, would be installed at an appropriate place in Bangalore. An amount of Rs.25 crores would be provided for this purpose.

   170.  Apart from this, 25 crore will be provided for development activities of various Kannada and Culture organisations.

   171.  Rs.10 crore will be provided for celebrating Mysore Dasara as a State festival.

   172.  State Government will provide Rs.25 crore for establishing  Basava International Centre. In addition to this, Rs.1 crore each will be provided to set up Kannada Study Chairs in Voorburg University, Heidelburg University, Munich University and Vienna University.

   173.  In order to promote Art and Culture in the State, Kala Bhavan will be established in the name of Nada Prabhu Kempegowda at Bangalore. For this purpose, Rs.10 crore will be provided.

   174.  For celebrating Basava Jayanthi, Kanaka Jayanthi, Ambedkar Jayanthi and Valmiki Jayanthi through the Government at all district and taluk levels, Rs.50,000 and 25,000 respectively will be provided.

   175.  Rs.5 crore will be provided for construction of a monument in memory of the 77th All India Kannada Sahithya Sammelana held at Bangalore.

   176.  In the name of Kuvempu, a Darshana Bhavan, museum and ‘Sahithigala Nenapina angala’ smaraka would be constructed. Government would initially provide Rs.5 crore for this purpose.

   177.  Struggling Kannada writers find it difficult to publish their writings because of financial constraints.  An amount of Rs.5 crore will be provided through Kannada Sahithya Parishath during 2011-12 to publish their works.

   178.  Karnataka Janapada Parishad is doing an excellent job of conservation and encouragement of folk arts. Recognising this achievement, an amount of Rs.1 crore will be given during 2011-12.

   179.  The central office of Janapada University will be established at Shiggaon.

   180.  In memory of the Vishwa Kannada Sammelana to be held at Belgaum in March 2011, Rs.5 crore will be provided for construction of a Glass House there.

   181.  During 2011-12, an amount of Rs.5 Crore will be provided for the development of Konkani language and culture.

   182.  To develop Sanskrit Wikipedia, Rs 1 crore would be provided as a grant to Sanskrit Bharathi.

   183.  An amount of Rs.3 crore will be provided for World Renewal Spiritual Trust, Hubli.

   184.  An amount of Rs.3 crore will be provided for installation of Basava statue in London.

   185.  Rs.5 crore will be provided for taking up research activities through Sri S.Nijalingappa memorial.

   186.  An amount of Rs.­­­1 crore will be provided for construction of an auditorium at Tiptur in memory of Sri T.R.Narasimharaju, noted comedian of Kannada film industry

   187.  As part of the Golden Jubilee celebrations of the New Delhi Kannada Education Trust, Rs.1 crore would be provided for the multipurpose educational complex to be constructed and Rs.50 lakhs will be provided to strengthen transport facilities by procuring two new buses for use of children of the Kannadigas studying there.

   188.  Rs.1 crore will be provided to the Delhi Karnataka Sangha.

   189.  An Indian Heritage Park in PPP model will be established at a cost of Rs.100 crore. The State Government will provide Rs.10 crore as its share during 2011-12.

   190.  An amount of Rs.1 crore will be provided for construction of a well equipped auditorium in Bellary through Rangathorana Institute.

   191.  An amount of Rs.2 crore will be provided for development of educational institutions started by Sri Rajashekar Murthy in Chamarajanagar.


   192.  Rs.5 crore will be provided for renovation of the Kanteerva Studio.

   193.  The government will provide Rs.5 crore for an International Film Festival to be held at Bangalore.

   194.  To encourage good quality Kannada films, the number of films getting financial assistance from the Government will be increased from 50 to 75 per annum.

Youth Services & Sports

   195.  The State’s sportspersons have performed remarkably well in the recently concluded Commonwealth Games in New Delhi and Asian Games in China, and have won a good number of medals including gold medals, bringing fame to our State. I take this opportunity to congratulate them on behalf of the people of the State. Sportspersons from the State who are selected to participate in national sports events will be provided with a special training allowance of Rs.100 per day while attending training camps. For providing necessary modern training to the talented athletes of the State and to enable them to participate in the national and international sports events, an amount of Rs.10 crore will be provided during

   196.  Rs.25 lakh will be given for the Shivaganga Yoga Kendra in Shimoga for Yoga training and Rs.25 lakh will be provided for Nisarga Trust in Sirsi.

   197.  Action will be taken for construction of Swimming Pools wherever necessary on Public Private Partnership basis in the districts through Urban Development Department and Local Bodies. For this purpose, Rs.10 crore will be provided by the State Government during 2011-12.

   198.  An amount of Rs.5 crore will be provided for construction of a well-equipped indoor stadium at Virajpet in Kodagu District.

   199.  An indoor and outdoor sports complex of international standard will be constructed at Vidyanagar in Shimoga District and an amount of Rs.10 crore will be provided for this.

   200.  An amount of Rs.5 crore will be provided during the current year for construction of a Sports Complex at Bellary.

Information Technology and Biotechnology

   201.  Karnataka is a frontrunner in the field of IT, BT and ST. The State attracts the highest amount of venture capital funding for biotechnology in India. To create an industry friendly environment and policy framework for the overall growth and development of the sector. The State has announced Semi-Conductor Policy, Bio-Tech Policy, ICT Policy and Electronic and Hardware Policy. In an attempt to provide employment to the rural youth, 32 rural BPO centers have so far been sanctioned.

   202.  Information Technology Investment Region (ITIR) is being set up on a PPP mode near BIAL, to promote investments in IT/ITES and Electronic Hardware Manufacturing. It is envisaged to provide excellent infrastructure and investor friendly policy environment in the ITIR. Preliminary notification for acquisition of 2072 acres of land has been issued by KIADB.

   203.  Acknowledging the contribution of the International Institute of Information Technology, Bangalore in the field of Information Technology, 50 acres of land would be provided to this institution for setting up an under-graduate campus in Dharwad.

   204.  The Master Control Facility Building of Karnataka State Natural Disaster Monitoring Centre is under progress & will be completed as scheduled. 

   205.  A grant of Rs.5 crore will be provided to assist 40 Higher educational institutions to strengthen their S&T infrastructure.

   206.  A grant of Rs.2 crore will be provided for the Karnataka Science and Technology Centres.

   207.  Priority to Science and Technology in Chitradruga District: The Honorable members would appreciate the efforts that our Government has put into developing Challakere taluka of Chitradurga into a Science and Technology Resource Hub. We have facilitated installation of the DRDO’s projects in 4250 acres of land as well as establishing the second campus of IISc by granting land of 1500 acres. Land has also been provided to Bhabha Atomic Research Centre and Indian Space Research Organisation for taking up their projects. 400 acres have been provided to KSSIDC to develop backward linkage industries and Rs 50 crore to Karnataka Housing Board to develop a modern housing project ‘Vedavati Nagar’. In this area various organizations would invest  around Rs.5000 crore.


   208.  The Government has taken up projects like e-procurement, HRMS, KSWAN, Bangalore-One and Nemmadi Rural Telecenter. The state has established 63 Bangalore One centres offering 45 citizen friendly services under a single roof.  On the model of Bangalore One, 35 Karnataka One centres have been established in 9 tier two cities across the State. The e-procurement project has brought a total of 90 departments/organizations under its fold. Because of e-procurement procedures, there has been an increase in competition and tender premium has also come down.

   209.  The ambitious AADHAR (UID) project to give Unique Identification Numbers to all the residents of the State has been implemented in the two Pilot Districts of Mysore and Tumkur. Our State stands first in the country in the implementation of this scheme. 8 other districts will also get covered by 1st March, 2011. As on date 14 lakh enrolments in the State have taken place.

   210.  A comprehensive e-Governance programme will be started in the taluka offices of Shimoga and Shikaripura for providing better services to the public.

   211.  An amount of Rs.40 crores will be provided for all the programmes connected with e-Governance.


   212.  Government is providing financial assistance to 39.75 lakh families under Social Security Schemes such as Sandhya Suraksha Yojana, National Old Age Pension Scheme, Destitute Widow Pension Scheme and Disability Pension Scheme. In order to streamline the system of disbursement, steps have been taken to deliver the social security assistance through electronic credit system. For the various social security schemes Rs. 1,742 crore is provided for in 2011-12.

   213.  The Revenue Department is taking up new initiatives like Scanning of Revenue Records, Computerized Land Acquisition Process, Tatkal Mutation and Urban Property Ownership Records Project.

   214.  For construction of district offices complex buildings, Rs.30 crore is provided. Similarly, for construction of Mini Vidhan Soudhas in taluks, Rs.25 crore will be provided.

   215.  There are 10,450 Gram Sahayaks working in village establishments. With effect from 1st April 2011, the Government would increase their honorarium from Rs. 3000 a month to Rs. 3500 a month.

   216.  The State Government has reserved Rs 60 crore for providing burial ground in rural areas wherever necessary and also for modern electric crematoriums in urban areas.

   217.  While my government has made substantial progress in area of Land Record Management, still many a time transactions are registered on properties by people who are not the owners as per Record of Rights. This leads to increasing civil disputes. Hence, a system will be put in place to ensure registration of transaction only by the owners of the properties as per RTC’s or UPOR records with valid pre-mutation sketches. This system will be implemented gradually.

   218.  Suvarna Soudha: The Suvarna Soudha project at Belgaum is being implemented at a fast pace, and it is expected that it will be completed soon. The Government has already released Rs. 212 crore over the past two years. An amount of Rs.138 crore will be provided in 2011-12 so as to complete the ongoing works.


   219.  Rs. 20 crore is allocated for providing infrastructural and stay facilities at 446 temples.

   220.  Rs.10 crore will be provided for integrated development of Melukote piligrimage centre.

   221.  Rs.1 crore is provided for improvements to Arameri Kalancheri Mutt in Virajpet Taluk of Kodagu District.

   222.  An amount of Rs.1 crore will be provided for renovation of Hasanamba Temple at Hassan City and Rs.1 crore for renovation of Siddeswara Temple situated in Hasanamba Temple.

   223.  Rs.1 crore would be provided to the renovation works of Chennaveera Shivayogigala Punyashrama in Basavakalyan Taluk of Bidar district.


   224.  The law and order situation in the State is being managed  effectively.  Maintenance of law and order is an essential requirement for the growth and development of the State. Construction of 31 police stations is under progress during 2010-11. Action has been taken to establish a new commissionerate in Mangalore. 1035 posts of ASI’s  have been created for the beat system in police stations throughout the State. Karnataka State Industrial Security Force (KSISF) with a strength of 1060 Officers/personnel has been constituted under the control of the Police Department.

   225.  The Armed Reserve Police Training Centre at Meenahalli in Bellary District necessary provision will be completed in 2011-12.

   226.  Rs.25 crore would be provided during the year 2011-12 for construction of new police stations and  completion of the police stations which are under construction.

   227.  Prisons:  Under the modernization fund, Rs.8 crore would be provided for purchase of security equipment like Cellphone jammers, CCTV & IP cameras, X-Ray baggage and body scanners for the 8 Central Prisons.

   228.  Sainik Welfare: Financial assistance will be given for training of candidates from all over the State to enable them to get selected in the recruitment rallies conducted by the armed forces recruitment agencies.


   229.  The State is committed to providing infrastructure facilities to the judicairy. An amount of Rs.35 crore was provided during the year 2010-11 for improving judicial infrastructure. This will be increased to Rs.75 crore in the year 2011-12. The State Government would provide the required grants for this purpose in future also.

   230.  An amount of Rs.1 crore is allocated for providing xerox machines for every Bar Association.

   231.  Rs.2 crore will be given for the construction of Bar Council Building in Bangalore. An amount of Rs.1 crore will be provided for the construction of Advocates Association building in Bangalore.

   232.  Rs.1 crore will be provided for the Vigneswara Law College building at Marthur, Gulbarga.


   233.  In the year 2010-11, the Transport Department had undertaken various customer friendly services. Accordingly, 25 lakhs driving licences and registration certificates are being issued in the form of smart cards. Apart from this, arrangements have been made for issuing national permits through internet for about 50,000 goods vehicles. It is proposed to adopt high level technology for providing additional services to the customers for payment of fees and taxes directly online.

   234.  In view of the scarcity of drivers in the State, HTV Drivers Training Schools will be established at Bangalore and Dharwad under PPP mode for producing good quality drivers and to minimize road accidents.  An amount of Rs.5 crore will be provided for this purpose.

Personnel and Administrative Reforms

   235.  In the all round development of the State, the government servants play an important role. The last pay revision was provided from April 2006 onwards. The Government servant’s pay is being revised once every six to seven years. A Pay Committee would be constituted for considering the government servants’ request.

   236.  Every year, the State Government is implementing various plan schemes. But there is no specified institutional mechanism for effective monitoring and evaluation of these schemes. To overcome this deficiency, a Programme Evaluation Unit will be established in the Planning Department during 2011-12.

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