BANGALORE: The Karnataka cabinet has approved the constitution of a panel to review the Bangalore Mysore Infrastructure Corridor (BMIC) project to find out if there were irregularities. The project is being executed by the Nandi Infrastructure Corridor Enterprises (NICE).

However, work on the project won't be stopped.

Meanwhile, NICE has said the government's move tantamounts to a default under the project agreement. NICE chairman Ashok Kheny denied any irregularities and asserted all changes were carried out within the Framework Agreement (FWA) and supervised by a government-appointed committee.

An empowered committee was created by the government to provide continuity to long-term projects which has 10 years gestation period and 30 years franchise period. In a letter to the CM, he said any modifications to the FWA will jeopardise the company's ability to take loans. Kheny said if the goal-posts are kept moving investors will shun long-gestation infrastructure projects.

The government will appoint former PWD secretary K.C. Reddy as the panel chairman. The committee will be represented by officials of the finance, commerce and industry, urban development, revenue and public works departments.

Revenue and parliamentary affairs minister M.P. Prakash said the project is facing several allegations relating to acquisition of excess land, change in alignment, alienation of land, designs in Peripheral Ring Road and technical details. "Apart from going through all these aspects, the panel will ascertain whether NICE is adhering to the original framework agreement. The panel will submit its report within 30 days," he added.

The minister made it clear that the project won't be dropped at any cost.