Government clears HDMC dues for purchasing complex for STP

Government clears HDMC dues for purchasing complex for STP
The Hindu

HUBLI: The State Government has cleared the dues of the Hubli-Dharwad Municipal Corporation towards purchase of a commercial complex built by the latter for housing the Software Technology Park in Hubli, bringing the curtains down on the nearly decade-old unsavoury chapter.

The State in an order passed on Thursday sanctioned the payment of Rs. 10.43 crores to the Karnataka Electronics Development Corporation (KEONICS), the State Government undertaking towards clearance of the pending dues to the corporation.

The corporation has been asked to execute the sale deed in favour of KEONICS, which has been entrusted with the responsibility of managing the Software Technology Park and the Corporation has been asked to utilise the money in converting into the double roads, the two roads linking the Software Technology Park with the State highway and the national highway, improve the water distribution network for the STP, improve the footpaths and the lighting system on major roads, develop a separate market complex for the street vendors and establish the local area network and wide area network facilities.

The State Government permitted the KEONICS to purchase the commercial complex being built by the Hubli Dharwad Municipal Corporation on November 8, 1999 at a cost of Rs. 23.10 crores for establishing the STP.

While the KEONICS paid a nominal sum of Rs. 1 crore to conclude the transaction and a loan burden of Rs. 11.57 crores was also transferred from the Corporation to the KEONICS and the payment of the rest of the money became a matter of controversy, with the State Government dragging its feet under one pretext or the other.

The uncertainty over the ownership had its own impact on the development of the STP, which did not go on the expected lines and the KEONICS found itself in hot waters, unable to recover rent from the occupants for want of clear title or conduct any negotiations with others about the development of the STP.