Karnataka govt in dilemma whether to distribute cash or bicycle

The state government is yet to reach a final decision on whether to distribute cash instead of bicycles for high school students. The government is in talks with the manufacturing companies to cut down on the quoted price.

“We have reserved Rs125 crore for the purchase of bicycles. But the companies are quoting high prices and estimated cost will come up to Rs311 crore now. If the price does not come down, we will be left with no other choice but to give cash to students,” said S Suresh Kumar, minister for law and parliamentary affairs on Thursday.

The government had on January 3 announced a plan to distribute Rs2,250 in cash for the students instead of bicycles citing delay in delivering cycles by the manufacturing companies as a reason. However, the plan was called off after several MLAs expressed their disapproval about the proposal.

Taking a U-turn on the issue, on January 18, the state government said that it would stick to the earlier plan and would distribute bicycles to all high school students.  After negotiations, the companies fixed the price at Rs2,770 for boys’ cycle and Rs2,7775 for that of girls’. 

“States like Bihar and Tamil Nadu are distributing cash instead of cycles. If the manufacturing companies did not agree to modify the rates it will be very difficult for the government and we will follow the other states,” he said.

The minister also said that the Union government should come up with a policy to prevent bicycle manufacturing companies from quoting high prices.