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    • Petition: Discuss the HUDCO loan
    PROOF's campaign coordinators are calling upon Bangalore's citizens to petition the city corporation for a public discussion of HUDCO's recent Rs.1000 crore loan to BMP.
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    Petition Update

    On Dec 7, 2002, the BMP commissioner Mr.Srinivasa Murthy responded to some of the questions on the HUDCO loan in the quarterly BMP performance review debate at Bangalore. There was an exchange of views that followed between the BMP officials and the PROOF campaign. India Together has temporarily suspended this petition until further notice will shortly publish the exchange.
    December 2002: You might be aware that the Bangalore Mahanagara Palike is entering into a Rs 1,000 crore loan with HUDCO. The first tranche of Rs 250 crore will be taken soon. The Public Records of Operation and Finance (PROOF) Campaign, built on the premise of financial accountability and transparency in government, is concerned about the process that has been pursued towards securing the loan and urges the need for a public discussion. This assumes critical significance especially in the light of the following questions:
    1. While funds for additional infrastructure are welcome since Bangalore desperately needs this, how were these specific projects identified? What was the level of citizen participation in identifying and prioritising these items? Are the projects that have been identified well distributed in the different parts of the city, and also across different sections of society?

    2. Given that the BMP has had some delays in paying back its existing loans (based on official financial statements of BMP for this year), how will it manage this additional burden? Will additional taxes be imposed on citizenry or will existing taxes be raised?

    3. The interest rate on this borrowing is 11%. Against the backdrop of declining rates over the past several months, can other financing options at a more attractive rate be considered? Were options like tax-free bonds or special funds explored?

    4. As this is 15-year debt, the youth of today will be the future repayers of this debt until 2017 . It would be good to get the participation of the youth as well, so that they fully understand the process of decision-making in public institutions.

    5. Can the BMP manage large projects well, without time or cost over-runs? The previous experience of the Municipal Bonds scheme where we borrowed Rs 125 crore provides an apt example. The lessons would caution against a scenario where we might need to borrow additional funds just to complete the projects that we borrowed the first Rs 250 crore for.

    6. How does this specific transaction fit into a larger plan for the city? As has already been announced, this is only a part of an overall Rs 1,000 crore Memorandum of Understanding with HUDCO. What is this larger plan for the next 5-10 years for the city? It would be a good idea for as many citizens of Bangalore to know this plan, and take a stake in making this happen.

    A free and frank discussion in the public domain is the need of the hour to address these questions. Not only will such a discussion be fruitful for this transaction, it will also generate greater ownership for the projects and the city as a whole among the public.

    We believe that the crux of good governance lies ultimately in citizens’ participation, preferably BEFORE decisions rather than AFTER. Contrary to what many feel, it is not too late. There is still plenty of time for such a discussion . The transaction has just been announced and there is still plenty of time to have a discussion BEFORE any funds are drawn.

    Citizens of Bangalore, if you feel that a public discussion is required, or have any other thoughts on the subject, and would like to do something about it, here is a quick action you can take.

    On Dec 7, 2002, the BMP commissioner Mr.Srinivasa Murthy responded to some of the questions on the HUDCO loan in the quarterly BMP performance review debate at Bangalore. There was an exchange of views that followed between the BMP officials and the PROOF campaign. India Together has temporarily suspended this petition until further notice.

    If your mailer is not setup, (if you are not an Outlook/Eudora user), cut&paste the text below into your mailer and send it with your full name and local address to the BMP Commissioner, with a copy to PROOF.

    “As a citizen of Bangalore, I would like to know more about the process and the implications of the recent BMP-HUDCO loan – the first tranche of which is reportedly Rs 250 crore. I urge the BMP to participate in a public dialogue at the earliest opportunity.”

    BMP:
    Mr Srinivasa Murthy,
    BMP Commissioner,
    NR Square, Bangalore-560002
    BMP Commissioner’s E-mail ID: commissioner@blrbmp.com

    PROOF:
    198 Nandidurg Road,
    Jayamahal, Bangalore 46
    Email: proof@vsnl.net

    Thank you for your support. Spread the word and inform fellow citizens about the actions that they could take.

    Ramesh Ramanathan
    Campaign Coordinator, Janaagraha
    		 Dr.Suresh Balakrishnan
    Director, PAC
    Dr. Vinod Vyasulu
    Director, CBPS
    		 Ashish Sen
    Director, VOICES

    This petition was authored by Francisco Saldanha, Bangalore. For more information, please contact PROOF at +91-80-354 2381/82, 3542977 Fax: 354 2966, Email: proof@vsnl.net

    PROOF's Partners:
    • Public Affairs Centre, Koramangala, Ph: 91-80-5537260, email: pacindia@vsnl.com
    • Centre for Budget and Policy Studies, Basavangudi, Ph: 91-80-6522327, email: cbps@vsnl.com
    • Janaagraha, Jayamahal, Ph: 91-80-3542381/82, email: Janaagraha@vsnl.net
    • Voices, Indiranagar, Ph: 91-80-5213902/03, email: proof_voices@vsnl.net
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