Karnataka govt helplessly chooses Centre's Option 1: 'Borrowing to make up for GST loss'

News Network
September 2, 2020
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Yediyurappa

Bengaluru, Sept 2: The BJP-ruled Karnataka today said it has decided to opt for the first among the two options offered by the Central government for borrowing to meet the shortfall in GST revenues, under which the state will be eligible for a total compensation of ₹ 18,289 crore.
The decision was taken by Chief Minister BS Yediyurappa, who also holds the finance portfolio, after a meeting with Finance officials.
Following the GST council meeting last week, the central government had written to states, suggesting options of borrowing money to make up for the ₹ 2.35 lakh crore shortfall in GST revenues expected in the ongoing fiscal. The Centre has estimated that of this amount, ₹ 97,000 crore compensation requirement is due to GST roll out and the remaining is on account of the COVID-19 impact on the economy.
Giving two options, the Centre had said states can borrow either ₹ 97,000 crore the deficit arising out of GST implementation or the entire ₹ 2.35 lakh crore.
Several non-BJP ruled states have rejected the Centre's suggestion of states borrowing to make up for the GST shortfall, saying the constitutional liability lies with the Union government.
"After the evaluating both these options, it is felt that option 1 would be more beneficial to the state's finances," official release from the Chief Minister's Office said.
The Chief Minister's Office noted that under option 1, Karnataka would be eligible for total compensation of ₹ 18,289 crore, of which ₹ 6,965 crore would come from the cess collected. For the balance of ₹ 11,324 crore, the state would be able to borrow through a special window with the burden of principal and interest repayment being met out of compensation cess fund in the future, it said.
"Further an additional borrowing up to 1 per cent of GSDP (Rs 18,036 crore) will be available unconditionally and another 1 percent borrowing can be linked to certain reforms as earlier suggested by Government of India," it said.

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News Network
January 6,2025

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Karnataka’s first C Band Doppler Weather Radar (DWR) in Mangaluru, work for which was supposed to have been finished by January 15, will be postponed slightly due to some technical difficulties, said N Puviarasan, head of India Meteorological Department (IMD)’s Bengaluru centre.

“We are hoping to get it running by this month's end at least,” said Puviarasan on the sidelines of a stakeholders’ workshop organised by the IMD Bengaluru on January 4 to commemorate 150 years of IMD. The workshop was held at the premises of Karnataka State Natural Disaster Management Centre (KSNDMC) and had day-long sessions, including technical ones by Hindustan Aeronautics Ltd, Bengaluru and Department of Agro Meteorology, University of Agricultural Sciences, Bengaluru.

Puviarasan also said the IMD ran into obstacles in its bid to establish a S-band DWR in Bengaluru, due to problems in acquiring the land required. “We need 30X30 space to put up a tower and a small utility room,” said Puviarasan. According to him, IMD had originally planned to put up the radar in Nandi Hills. But, on Union Minister of State for Micro, Small and Medium Enterprises and Labour & Employment Shobha Karandlaje’s request, he said they started scouting for an appropriate place in Bengaluru. On July 23, 2024 Karandlaje had posted on X: “Following my request, the IMD has greenlit the installation of a Doppler radar in the city (Bengaluru), scheduled to be operational by year-end. This is a major step towards better weather forecasting & preparedness for natural disasters."

She had also posted a letter written to her by Union Minister of State (Independent Charge) Jitendra Singh, who said the radar will have an operational range of 250 km and will be installed in Bengaluru by 2024. He also mentioned that the site for the radar installation has already been identified and the Centre had informed the state government to acquire the site. “But the site suggested by the minister is not feasible because of the elevation issues,” said Puviarsan.

According to IMD scientists, there should not be buildings higher than the radar within its range, as readings will be affected. Puviarasan said they have now identified a place within a government school in Bengaluru and are awaiting permission to establish the radar. He said usually land acquisition is a huge problem. “This time, it’s a government school. Here, we don’t even need to raise a boundary wall, as it exists already. So, we’ll see,” said the director. If this is not working out, he said IMD will go back to its initial plan and will establish the radar in Nandi Hills. Mangaluru radar, being established near Kadri, is expected to cover 250-300 km radius, putting regions prone to heavy rains during monsoons in Karnataka, like Agumbe, Hulikal, Talakaveri, Kerekatte and Bhagamandala within its range, said a IMD scientist. Earlier, in his presentation, Puviarasan had also said apart from Bengaluru and Mangaluru, one X-band DWR is coming up at Dharwad. He also said proposals have been submitted for S-band radar at Honnavara and C-band at Ballari.

Without a DWR, Karnataka has been depending on the radars in Goa, Hyderabad and Chennai for more accuracy in forecasts for thunderstorms and rainfall so far, said IMD officials. In his presentation, Director of KSNDMC, Bhoyar Harshal Narayanrao, talked about why Karnataka is vulnerable to hydro-meteorological and geological disasters. He also said 80 per cent of Karnataka is prone to drought, and that in the last 23 years (between 2001 and 2024), 16 years are drought affected. He also said maximum number of landslides leaving widespread damage and casualties have occurred in Uttara Kannada, Shivamogga, Chikkamamgaluru, Udupi, Dakshina Kannada, Kodagu, Hassan, Chamrajanagara Mysuru and Chikkaballapura. The year 2018 saw the most landslides, at 462, between 2006 and 2024. Narayanrao also said Karnataka is the only state in the south with its own disaster monitoring centre and seeing its success other states are also thinking of establishing one on the lines of KSNDMC. He said KSNDMC is also being approached by a few startups to involve Artificial Intelligence in disaster management. “We are taking a cautious approach towards the idea. We are looking into what AI can offer and will decide accordingly,” said Narayanrao.

Other presentations included an overview of IMD services by S Balachandran, head of Regional Meteorological Centre, Chennai and possible integration of climate services in support of Karnataka State Action Plan on climate change by K J Ramesh, Former Director General, IMD. Sanjeev Verma, AGM, Air Traffic Management, Airports Authority of India, Kempegowda International Airport, Bengaluru also made a presentation of how weather forecasting is integral for air traffic management.

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News Network
January 17,2025

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Dubai: Air Kerala, India’s newest airline supported by UAE investors, has selected Kochi International Airport as its primary operational hub. The airline announced this decision early Thursday, revealing plans for its inaugural domestic flight from Kochi in June this year, followed by a UAE launch in 2027. 

The announcement was made at a press conference in Kochi recently in the presence of several members of the Kerala government, including Industries, Law, and Coir Minister P. Rajeve.

P. Rajeve expressed, "Air Kerala’s establishment marks a proud moment for the state, promising to enhance connectivity, generate employment, and boost tourism."

Chairman Afi Ahmed, a Dubai-based entrepreneur, highlighted, "Choosing COK as our base underscores our confidence in Kerala's potential to emerge as a key aviation hub. We are eager to contribute to and connect the state's growth with the world."

Aircraft Acquisition:

CEO Harish Kutty announced that the initial phase will utilize five leased aircraft, each with a 76-seat capacity. An agreement has been finalized with an Irish lessor for these planes. Over the next two years, the airline plans to acquire an additional 20 new aircraft.

Air Kerala aims to expand its services internationally, connecting major cities and reaching smaller towns across South India.

Economic Impact and Growth:

According to Ahmed, as Kerala’s first airline, Air Kerala is poised to significantly impact the state's economy. "The airline’s operations will create 750 direct and indirect job opportunities in its first year," he stated.

The airline also anticipates a boost to Kerala's tourism sector. Ahmed noted, "With affordable fares and accessible routes, Air Kerala aims to attract global tourists eager to explore Kerala."

Harish Kutty emphasized the airline's commitment to operating as a true ultra-low-cost carrier, making air travel affordable for all. "We aim to convert bus and train passengers into air travelers with our competitive fares and superior service," he affirmed.

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News Network
January 15,2025

The US consulate in Bengaluru will hold its ‘site-dedication ceremony’ on January 17, with officials confirming that the location of the upcoming consulate will be disclosed during the event. Sources indicate that the site could be in either the Central Business District or Whitefield.

While the consulate building is under development, visa services may temporarily begin at the JW Marriott hotel, which currently houses the United States Commercial Service (USCS) office.

Bengaluru has long advocated for the establishment of a US consulate, and with its opening, residents of the city and Karnataka will no longer need to travel to other states for their US visa applications.

It was in January of the previous year that External Affairs Minister S. Jaishankar, during his visit to Bengaluru, expressed his intention to urge the US Ambassador to India to establish a consulate in the city. This move follows the announcement during Prime Minister Modi’s June 2023 visit to the US, where it was revealed that two new US consulates would open in Bengaluru and Ahmedabad, and India would set up a mission in Seattle.

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