From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Sep 12: Karnataka chief minister B S Yeddyurappa has urged the World Bank to immediately release $ 475 million pending loan assistance to the state to ensure early implementation of six ongoing infrastructure development projects.

The chief minister, who held a detailed meeting with World Bank country director Roberto Zagha and his team of officers in his chambers on Friday, pointed out that the World Bank was yet to release $ 475 million out of the $ 857 nillion loan assistance prominent to the state.

The World Bank has responded positively to the state gvovernment’s request for implementing pertaining to municipal reforms, community based tank development, gram swaraj, panchayat raj as well as rural and urban water supply schemes.

In addition to the six projects already approved by the World Bank for loan assistance, Yeddyurappa and the state government officials submitted proposals seeking another $ 700 million loan assistance for Karnataka State Highway Improvement Project - II (KSHIP), Karnataka Watershed Development Project II and Karnataka Rural Water Supply and Sanitation Project II.

Later talking to reporters, Zagha said the Bank team was trying to understand Karnataka’s development priorities and see how best it could partner.

``The Bank would hold discussions with the State government on loan requirements pertaining to water, highways and rural development projects,’’ he said.

He, however, felt India has done ``extraordinarily well’’ in tackling the global economic slowdown with sound fiscal and monetary policies even though the situation was one of the worst in the last 70 years and had seriously affected even the advanced western countries.

``The global crisis is of unprecedented proportions and nature. India handled it remarkably well on fiscal and monetary fronts as also on issues relating to contraction in credit, he said pointing out that the Bank was  ``very much appreciative’’ of the country’s efforts.

``We are very impressed,’’ he said.

Metro Rail is the future of urban transport

Meanwhile, the chief minister termed the metro rail network, presently under implementation in Bangalore and many other cities, was the ``future of urban transport improvement.’’

Addressing a function after flagging off the first set of standard gauge coaches manufactured by central public sector undertaking, BEML, for the Delhi Metro Rail Corporation (DMRC), Yeddyurappa said metro rail networks were ``a safe and comfortable mode of transport in cities such as Bangalore, which suffer from severe traffic congestion.’’

Referring to the Value Added Tax concessions extended to BEML by the government, he said: ``The measure has yielded rich dividends, resulting in world class infrastructure and manufacturing capability within the State.’’

Union Minister of State for Railways K.H. Muniyappa symbolically handed over the first indigenously developed 80-tonne aluminium wagon developed by BEML to the National Aluminium Company Ltd. (NALCO).

Union Minister of State for Defence M.M. Pallam Raju said BEML had displayed the capability of diversifying its product range. He pointed out that the company had bagged the contract for supplying 150 coaches for the Bangalore metro project ``despite stiff global competition.’’

DMRC chairman E. Sreedharan said BEML would supply 196 standard gauge coaches for Phase II of the Delhi Metro. This may be followed by an additional order for about 60 coaches when the Delhi-Faridabad line was ready for operations.;;

The DMRC planned to increase the length of its train from four to six cars. It had placed an ``experimental order’’ for eight coaches with BEML to run these trains. ``If the experiment is successful, we plan to extend the length of 70 trains to six cars,’’he said.

Sreedharan said tax concessions extended to BEML by the State government had enabled it to keep the costs low. More such measures were required to enable BEML to become competitive, he said warmly appreciating BEML’s move to develop low-cost coaches.

BEML had played a significant role by developing indigenous capability. ``When we established the DMRC, we never imagined that metro cars would roll out of a facility like the BEML,’’ he said.

BEML’s chairman and managing director V.R.S. Natarajan said Chinese metro car manufacturers, aided by ``special incentives,’’ had developed export capabilities significantly. ``Permanent VAT and Customs Duty exemptions would enable BEML to compete effectively with Chinese manufacturers,’’ he said.

BEML’s research and development centre for designing and developing low-cost coaches in Bangalore was likely to be inaugurated shorlty..

The aluminium wagon, jointly developed by BEML and NALCO, is meant for use in the high-speed freight corridors that are being developed by the Railways. The two PSUs had "acted proactively because the high speed freight corridors are not yet operational,’’ Natarajan said.