News Brief

Despite Fiscal Challenges, CM Yediyurappa Provides Big Boost To Bengaluru Infra In Karnataka Budget  

India Infrahub

Mar 06, 2020, 11:24 AM | Updated 11:24 AM IST

CM Website
CM Website

Facing the twin challenges of decline in revenue collection due to economic slowdown and reduced allocation of central funds due to the interim formula of 15th Finance commission, Karnataka Chief Minister BS Yediyurappa today (Mar 5) presented the state budget for  2020-21.

Despite constrained by limited fiscal space, CM Yediyurappa, who also holds the Bengaluru Development portfolio, underscored his government’s continued commitment to the overall development of Bengaluru and allocated funds for all key, ongoing infrastructure projects.

Acknowledging that Bengaluru is pivot of state’s economy, CM Yediyurappa noted “Half of the contribution of Karnataka GSDP (Gross State Domestic Product) comes from Bengaluru alone. People from different states come to Bengaluru for their livelihood. Therefore, it is imperative to give special attention for Bengaluru for the sake of economic development of the State and Country. Hence, I present a part of the Budget by consolidating the efforts of all the departments towards development of Bengaluru.”

The CM allocated over Rs 12,000 crores for various departments, including Bruhat Bengaluru Mahanagara Palike (BBMP) and Bangalore Water Supply and Sewerage Board (BWSSB).


The CM announced that the construction of 56 km long Outer Ring Road – Airport Metro from Central Silk Board junction to Bengaluru International Airport at an estimated cost of Rs 14,500 crore will commence this financial year.

As part of the Outer Ring Road – Airport Metro project, BMRCL in December invited bids from eligible bidders for the construction of the Phase-2A, 19-km Metro line between KR Puram and Central Silk Board. The final submission deadline for the bids ended on 24 February and the tender will be awarded shortly.

With CM announcing that the construction of the entire project will begin this financial year, the decks are cleared for BMRCL to invite bids for Phase-2B that will cover the remaining 37 Km stretch from KR Puram to International Airport in Bangalore City in February 2020. This phase will comprise of 17 station including 15 eleveated station and 2 stations at Airport Terminal are at grade along with one New Depot.

The CM also promised to commission by end of 2020 the metro lines of a total length of 12.8 km on Mysore road upto Kengeri and on Kanakapura road upto Anjanapura cross/road under the Namma Metro Project.

The CM announced that a detailed project report for a two new metro lines, ‘Outer Ring Road – West Metro’ from Hebbala to J.P.Nagar and ‘Magadi road Metrolite’ metro tracks with total length of 44 km, will be undertaken this financial year. The project is proposed to be implemented through public-private partnership route.

Suburban Rail And Other Railway Projects

The CM alloctated Rs 500 crore from the state budget to kickstart the much-delayed suburban railway project.

During the Union budget speech, Union Finance Minister Nirmala Sitharaman announced “The 148-km-long Bengaluru Suburban transport project, coming up at a cost of Rs 18,600 crore, would have fares based on the Metro model. The central government would provide 20 per cent of equity and facilitate external assistance up to 60 per cent of the project cost.”

Reiterating Central Government’s commitment to contribute 20 per cent of the funds for the suburban railway project, FM Nirmala Sitharaman last month clarified that the Rs 1 crore allocation made in the recently presented Union Budget for the 148-km suburban rail project for Bengaluru “was only a token provision” as part of “budgeting technicality”.

The FM also had added that 0ut of the Rs 18,600 crore project cost, the Centre and Karnataka will share 20 per cent each, while 60 per cent of the project financing will come from various multilateral lending institutions for which the Centre will provide sovereign guarantee for the loan. She has also clarified that the  project has been cleared by the Cabinet Committee on Economic Affairs (CCEA).

As per the latest detailed project report (DPR) prepared by the Railways, the suburban rail is expected to have a 148-km network with 57 stations. The project will have four corridors: Kengeri-Whitefield, KSR Bengaluru City-Rajanukunte, Nelamangala-Baiyappanahalli and Heelalige-Devenahalli.

Signalling a start to the project, the implementing agency of the project K-RIDE (Rail lnfrastructure Development Company (Karnataka) Limited) recently floated a tender for the land survey, identification and investigation of underground, overground and overhead. It also called a tender for conducting a land survey for Bengaluru suburban railway project in and around Bengaluru city at a cost of Rs 62.79 lakh.

The CM also announced in his budget speech that Ministry of Railways has accorded sanction for double track project of Byappanahalli – Hosur and Yeshwanthpura – Channasandra railway tracks. Given that the doubling of these railway tracks would help in providing more number of suburban trains, the CM announced that State Government has decided to incur 50% of the project expenditure.

Bus Related

The CM announced that Bengaluru Metropolitan Transport Corporation will be purchasing 1500 diesel buses at an expenditure of Rs 600 crore to augment transport facility for the increasing population in Bengaluru city. For this, Government of Karnataka will provide Rs 100 crore every year, for a period of seven years, in the form of loan subsidy to Bengaluru Metropolitan Transport Corporation.

Under FAME-2 scheme of Government of India, 300 air-conditioned electric buses will be added to the fleet of Bengaluru Metropolitan Transport Corporation, CM announced in his budged speech. On similar lines, state government will also be providing a grant of Rs 100 crore for adding 500 ordinary electric buses to the fleet of the corporation.

The CM also announced his decision to purchase 90 electric buses under Smart City Project in order to encourage mass transport and to provide effective Metro Feeder Transport facility to Metro commuters. A proposal to develop “Bus Priority Lane” in 12 corridors having high traffic density in Bengaluru city under Phase-2 was also unveiled

Water And Waste

The CM announced an action plan with approved projects at a total cost of Rs 8,344 crore under “Mukhyamantrigala Nava Nagaroththana” scheme. The highlights of this schemes include

  • Allocation of Rs.417 crore for comprehensive development of lakes of Bengaluru city under “Shubhra Bengaluru” and “Mukyamanthrigala Navanagarothana” scheme.
  • A grant of Rs.200 crore to fill the missing gaps in the major storm water drain network of Bengaluru city.
  • Establishment of a new “Waste to Energy” power generation centre of 11.50 mega watt capacity in Bidadi of Ramanagara District at an expenditure of Rs.210 crore by Karnataka Power Corporation Ltd., in partnership with BBMP. Generation of 70 million units of power annually.
  • Women rest room facility in selected Government offices under “Bengaluru Smart City” project.
  • Establishment of 4 electric crematoriums in different parts of Bengaluru.
  • Completion of rejuvenation of T.G. Halli Water Resources by end of September 2021.
  • Action to increase waste water treatment capacity of Bengaluru Water Supply and Sewerage Board to 1587 million litres by end of 2020-21.
  • A grant of Rs 1000 crore for rejuvenation and modernization of old sewerage treatment plants.
  • Completion of 5th phase of Cauvery Water Supply Scheme at an expenditure of Rs.5,550 crore by end of 2023.


Pointing out that Bengaluru is known in the country as the “City of Lakes”, the CM admitted that encroachment of lakes is on the rise in recent days.

“Lakes are getting polluted with sewage water making its way into them. In order to prevent this and also for comprehensive development of lakes, an action plan of Rs.100 crore has been approved under “Shubhra Bengaluru”, the CM said.

Rs 317 crore has been specifically earmarked for the development of lakes under the already approved “Mukhyamanthrigala Navanagaroththana” scheme.  By utilising this grant,the CM said that the government will convert the lakes of Bengaluru into green locations for citizens and flock of birds.


Noting that Bengaluru Water Supply and Sewerage Board (BWSSB) is constructing water supply pipeline and drainage system in 110 villages merged in Bengaluru city and this has resulted in deterioration of roads, the CM has announced that Rs 1,000 crore will be provided in the next two years for restoration of these roads. Rs 500 crore will be provided for this purpose in the current year.

The CM also announced the following proposals with accompanying budgetary allocations.

  • Road cross over facility for pedestrians other than metro commuters through 24 metro stations.
  • A grant of Rs 1,000 crore for restoration of deteriorated roads of 110 villages merged in Bengaluru city in the next two years.
  • Priority for increasing the utilisation of public transport, transit based growth and other regulatory measures.
  • Action to increase transport capacity in Hebbala, Silk Board and K.R.Puram junctions.
  • A grant of Rs.500 crore for development of roads having traffic congestion in the jurisdiction of Bengaluru city through Karnataka Road Development Authority.
  • A grant of Rs 200 crore to Road Safety Fund to implement various road safety activities.
  • To prevent parking of vehicles on the road, underground vehicle parking project will be taken up in one congested area under private-partnership.

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