Karnataka eyes Rs 2,800 cr from sale of govt land

BANGALORE: Karnataka expects to mobilise Rs 2,800 crore from sale of government land and Rs 1,000 crore from royalty on minerals in the coming financial year.

Medium Term Fiscal Plan ( MTFP) 2009-13 had anticipated revenues of Rs 1,900 crore from the sale of government land in the current fiscal but due to the real estate market slow-down which caused a severe downside correction in the property prices, these sales to raise additional resources were not considered.

"It is expected that in 2009-10, not more than Rs 100 crore will be realised", the MTFP 2010-14 tabled in the assembly said. "Hence, there will be a shortfall of Rs 1,800 crore".

"Since the market conditions are showing signs of improvement, it is expected that in the next year, better realisation can be achieved from the sale of land, the target for the year 2010-11 is kept at Rs 2,800 crore", it said.

The MTFP 2010-14 also said that during the current financial year, the Central government revised royalty rates on major minerals and, as a result, the revenue projections for royalty receivable by the State in the next year is expected to increase by 40 per cent.

"Although, the demand in the international market for these minerals is still subdued, an upward trend in prices for the last two quarters has been witnessed", it said."The Government is hopeful of meeting a target of Rs 1,000 crore as collections from royalty during 2010-11, against the 2009-10 (revised estimates) target of Rs 720 crore".