Major General

S.G.Vombatkere, VSM (Retd)                                       475, 7th Main Road

M.E (Struct), PhD (I.I.T), F.I.E (India), C.Eng                                              Vijayanagar 1st Stage

E-mail : sgvombatkere@hotmail.com                                                MYSORE – 570 017

Tel : 0821-515187                                                  13 October 2001

 

Dear Mr. Suresh,

 

I have been given to understand that HUDCO has loaned or is proposing to loan a very large sum of money to M/s Nandi Infrastructure Corridor Enterprises (NICE), of which Mr. Ashok Kheny is the MD, for the Bangalore-Mysore Infrastructure Corridor (BMIC) Project. I have come to know that the BMIC Project has some aspects that may cause the amount loaned to become difficult to recover, and am therefore bringing this matter to your attention.

 

Being in New Delhi, you may not have heard that there is considerable opposition to the BMIC Project from the farmers (both landed and landless) and others, numbering about two lakhs, who will be displaced by the land acquisition process. Their slogan is “We will give our lives but not our land”. The opposition is being organized by the BMIC Virodhi Okkuta, formed by the Karnataka Vimochana Ranga (KVR), Karnataka Rajya Raitha Sangha (KRRS), and several other NGOs. There have been a series of rallies and demonstrations and recently (06 October) a successful “Mandya bandh” that has brought the problems to wider public attention. And the campaign, I understand, is proceeding. Of course, the Government of Karnataka is proceeding with giving clearances to NICE and has every intention of going through with the Project. But given the growing opposition on the ground, the moot point is whether the Project will undergo serious delays if at all it succeeds. Naturally this will affect the financial viability of the Project and the capacity of NICE to repay the loans that it has taken from various financial institutions.

 

I am attaching a document that I believe you must read to know some facts about the BMIC Project. Do please open the attachment and read, as I feel sure that it will have a bearing on the loans to NICE by HUDCO.

 

Yours sincerely,

 

 

Maj Gen S.G.Vombatkere (Retd)

 

Mr. V. Suresh (By E-mail to vsuresh@hudco.org)

CMD, HUDCO

New Delhi