Press Release

                                                                                                26 April 2001, Bangalore

 

 

VHB Inc. of USA, key “Project Consortium member” denies Role in the massive BMIC Project

Fraud perpetrated on the people should be investigated and Government support to this outrageous Project must stop

 

 

“I do not know of the existence of any scope defining a future role for us” is how Mr. Richard Hangen, Senior Vice President of the US based Vanasse Hangen Brustlin (VHB, rhangen@vhb.com)  characterised the role for his company in the controversial Bangalore Mysore Infrastructure Corridor (BMIC).  He further states that “VHB is not and never has been a principal in Nandi Infrastructure Corridor Enterprise (NICE).  VHB was engaged by NICE to prepare a preliminary plan for the BMIC.  This plan was completed in 1995.  Since then VHB has not been involved.”  Mr. Hangen’s clarification on the nature of VHB’s involvement in the project is in response to various queries initiated by undersigned Leo F. Saldanha, Coordinator of Environment Support Group via email between 27 March and 3rd April 2001 (relevant extracts enclosed). 

 

Contrary to Mr. Hangen’s assertions, Nandi Infrastructure Corridor Enterprise Ltd., the company formed to develop the controversial BMIC project, claims that VHB is a part of the Project Consortium.  In its entire official project documentation NICE repeatedly affirms the integral involvement of VHB in the project and in its official website (http://business.vsnl.com/niceltd/) claims for VHB a role and capacity as “the Consortium’s lead engineer for the Bangalore Mysore Infrastructure Corridor Project”.  Clearly, this is contradictory to what Mr. Hangen claims.

 

VHB’s involvement in the BMIC project was first mooted by His Excellency the Governor of the US State of Massachusetts, whilst apparently on a “trade mission” to Karnataka on 20th February 1995.  On the same day, the Karnataka Government signed an MOU with VHB, SAB Engineering and Construction Inc., USA and Kalyani Group of India committing State support to the BMIC project as conceived by these companies.  Subsequent statutory clearances have proceeded on the basis that all these companies as defined in the MOU are involved in the project.

 

Mr. Hangen rejecting NICE’s claim that VHB is involved in the project is a very serious matter indeed.  Without VHB, NICE is clearly not in a position to provide techno-economic support to this massive project. By unquestioningly sustaining NICE’s claims the Government of Karnataka has been party to the fraud of submitting project development capacity without basis. Over 25 key departments and agencies of the Government have reviewed the project over the past six years without examining parties involved.  Now VHB insists it has not been involved in the project since 1995 and that it has no plans for future involvement!  Fundamentally this is a case of fraud that has been actively perpetrated on the decision making process of the Government, perhaps knowingly, and is clearly against the wider public interest.

 

Alternatives not considered and Right to Information denied:

 

The implications of this revelation are grave indeed.  The Karnataka Government has pushed the project without reviewing any alternatives proposed, including the viable development of the existing two highways and minimum investment needed for doubling the rail-link between the two cities to enable safe mass transport systems.  Further, on the advice of NICE, the Government has classified all details of the project, including techno-economic, environmental and social information, as confidential; a stand that has been upheld by the High Court of Karnataka! Strong use of force has been targeted against citizens’ groups, including the undersigned, and State initiated human rights abuses have been the norm during Statutory Public Hearings “held” last year.

 

The massive adverse impacts of the project:

 

We note with great concern that the BMIC Project is amongst the largest infrastructure development schemes initiated in India in recent times, and that it has been heralded as a “model” for India in the “age of Globalisation”. Involving the building of an expressway between Bangalore and Mysore (about 130 kms), the project envisages a pattern of cross subsidisation by building five townships along the corridor. Only 2,000 acres is required for the Expressway, and yet over 21,000 acres is proposed for acquisition.  NICE proposes to develop the Expressway on a BOOT scheme over 30 years, after which the Expressway will be passed on to the Government for maintenance. NICE will continue to retain control over the townships to exploit its real estate value.  The cost of the project is Rs. 4,000 crores presently (US$ 1 billion, up from the previous costing of US$ 500 million, or Rs. 2,000 crores approx.).

 

Two thirds of the land proposed for acquisition involve prime agricultural lands irrigated by a network of canals.  A fair amount of forests and internationally recognised wetlands will also be lost.  The most damning aspect of this project is that it will displace over 200,000 people, of whom only about 20% will be compensated on the basis of landholding.  The rest will not be compensated as they mostly consist of land-less labourers (information provided by NICE). 

 

About 7,000 acres of the land to be acquired belongs to the Government, and this will be passed on to NICE at Rs. 10/acre (i.e. 20 cents) as a subsidy.  The cost to local communities and the environment is enormous indeed, and all services of the project are beyond the reach of common citizens.  In fact the expressway and townships proposed would be walled all along to provide safe passage and enclaves for those who can afford!

 

We demand:

 

This outrageous scheme must come to an end.  Considering now that it has been revealed that the promoters of the project have perpetrated fraud on the people and the decision making process, we demand an investigation into this matter immediately.  Consequently, the Government of Karnataka must stop the ongoing process of land acquisition, and the Ministry of Environment and Forests, which is considering the project for final environmental clearance today, must reject the same.  

 

 

 

 

Leo F. Saldanha                                  Maj. Gen. S. G. Vombatkere (Retd.)            B. G. Krishnamurty/Vasu

Coordinator                           Mysore Grahakara Parishat/                        Karnataka Vimochana Ranga/

Environment Support Group            Mysore Lok Swaraj Andolana                       BMIC Virodhi Okkoota

esg@bgl.vsnl.net.in                Sgvombatkere@hotmail.com                      kaviram89@hotmail.com

 

 

Address for Contact:

 

Environment Support Group ®, S-3, Rajashree Apartments, 18/57, Ist Main Road, SRK Gardens, Bannerghatta Road, Jayanagar, Bangalore 560 041. INDIA. Telefax: 91-80-6341977

Website: http://www.altindia.net/esg/index.htm