Private schools in Karnataka facing financial crunch; some on the verge of closure: Association

Karnataka's Urban Development Minister, BS Suresha (Byrathi), has initiated a detailed investigation into ₹5,527 crore worth of projects executed under Prime Minister Narendra Modi’s flagship Smart Cities Mission in six cities of the state.

The minister expressed dissatisfaction with the quality of work in Belagavi, Davangere, Hubballi-Dharwad, Mangaluru, Shivamogga, and Tumakuru. To ensure accountability, Suresha announced the formation of a committee comprising experts from universities and the Indian Institute of Science. The committee will assess the projects and submit its findings within three months.

Bengaluru, however, is excluded from the probe as it falls under the jurisdiction of Deputy Chief Minister DK Shivakumar.

Launched in 2015, the Smart Cities Mission aims to enhance urban infrastructure across 100 cities in India, funded jointly by the central and state governments. Karnataka has spent ₹6,405 crore under this mission, including ₹877.72 crore in Bengaluru.

"Most of the funds have been allocated to roads, drainage, and park maintenance," Suresha lamented in a statement. "The focus should have been on creating permanent infrastructure such as smart schools, hospitals, libraries, and bus stands."

Suresha pointed out that, on average, each Smart City in Karnataka received ₹990 crore, with spending patterns revealing 36% on roads, 8% on energy, 2% on education, 2% on healthcare, and 5% on sports. He criticized this distribution, emphasizing that projects under the mission should have developed long-lasting government assets instead of temporary solutions like roads and drains.

With the mission slated to conclude in March 2025, Suresha urged the remaining funds to be directed towards constructing world-class smart schools. "This will enable children from economically weaker sections to access quality education," he said.

The minister also revealed that he had received multiple complaints from elected representatives about substandard work, particularly in Belagavi, Hubballi-Dharwad, and Shivamogga. The probe, he assured, will prioritize transparency and accountability.

Mangaluru: The long-awaited DC office complex in Padil is nearing completion, with plans underway to inaugurate the facility during Chief Minister Siddaramaiah’s visit to Mangaluru for the State Olympics meet on January 17. Karnataka Legislative Assembly Speaker U T Khader inspected the site and emphasized the urgency of completing the ₹75 crore project within the set deadline.

“We aim to finish the work by January 10 so that the inauguration can align with the Chief Minister’s visit. However, the final decision will depend on the project’s readiness by then,” Khader stated during his site inspection.

The ambitious project, reflecting the rich Tulu Nadu heritage in its design, received administrative approval on April 28, 2015. Following delays, the work order was issued on February 3, 2018, and construction began on March 17, 2018. Khader assured that the building's traditional architecture will extend to its surroundings, including an aesthetically designed entrance gate.

Spread across 5.89 acres, the complex boasts a total plinth area of 21,054.88 sq m, encompassing multiple levels:

Basement: 4043.88 sq m
Ground Floor: 7553.36 sq m
First Floor: 4158.94 sq m
Second and Third Floors: 2561.28 sq m each
Roof 1 and 2: 88.07 sq m each

The facility aims to centralize government services by housing most departments—except Revenue and RDPR—under one roof. This initiative, Khader highlighted, will streamline operations, save time, and enhance convenience for both officials and the public.

"Officials have been directed to expedite the remaining work, ensuring its timely completion," he added, reaffirming the government’s commitment to creating a functional and visually iconic administrative hub for the region.

Mangaluru: In a significant development, Mescom has proposed a phased electricity tariff hike starting with Rs 0.70 per unit for the fiscal year 2025-26. The proposal has been submitted to the Karnataka Electricity Regulatory Commission (KERC) for approval, signaling a potential increase in electricity costs for consumers.

Mescom emphasized that the current tariff structure is insufficient to meet operational expenses and manage revenue effectively. To address this, the company has invited public objections to the proposed hike.

Currently, the electricity supply cost is Rs 9.23 per unit, while the consumer tariff stands at Rs 8.53 per unit, leading to a shortfall of Rs 0.70 per unit. For the financial year 2023-24, Mescom reported revenue of Rs 5,924.73 crore against an expenditure of Rs 6,310.39 crore, resulting in a deficit of Rs 367.66 crore. For the 2025-26 fiscal year, projected revenue is Rs 5,850.81 crore, with an actual requirement of Rs 5,961.63 crore, creating a deficit of Rs 110.82 crore.

In a first, Mescom has submitted a multi-year tariff revision proposal to KERC. The plan outlines a hike of Rs 0.70 per unit for 2025-26, followed by Rs 0.37 per unit for 2026-27 and Rs 0.54 per unit for 2027-28.

"An increase in electricity tariff is inevitable," stated Jayakumar R, Managing Director of Mescom. "Mescom has submitted a proposal in this regard to KERC."