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BANGALORE, March 26

EVEN though it had mobilised large funds for its irrigation project, the revision in the estimate due to escalation of the cost of the canal works and of rehabilitation and resettlement, had forced Krishna Bhagya Jala Nigam Ltd (KBJNL) to look for more funds.

The Nigam, whose public issue of secured redeemable bonds opens tomorrow, to raise Rs 350 crore, had earlier raised Rs 4,327.71 crore from the market by issue of bonds and term loans. From the initial estimate of Rs 5,760 crore, the cost of the project has shot up to Rs 8,271.55 crore, which excludes the interest component.

The company has spent Rs 7,718.86 crore on the project as on January 31. KBJNL is implementing the Upper Krishna Project, which involves utilisation of 173 tmc feet of water to irrigate 6.22 lakh hectares of land when completed. The project consists of two dams across the river Krishna and a network of canals.

When completed, it will bring relief to the drought-prone regions of the State. Phase I and II of the Stage I of the project, which will irrigate 1.05 lakh hectares of land, and the Stage II of the project, which will extend irrigation facilities to 1.7 lakh hectares have already been completed.

The third stage of the project is under implementation and is expected to be completed by December this year.

On completion, the third stage is expected to benefit farmers of Gulbarga, Bijapur, Bagalkot and Raichur districts of the State.

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