
Karnataka Budget Doubles Infrastructure Grant to ₹7,000 Crore, Boosting Bengaluru’s Development
With BBMP civic polls ahead and rising public criticism over poor infrastructure, Siddaramaiah has given a thrust on Bengaluru in the budget.
Karnataka CM Siddaramaiah, who presented his record 16th budget on March 7, has given a major push to Bengaluru ahead of the Bruhat Bengaluru Mahanagara Palike (BBMP) elections and in response to growing public criticism over poor infrastructure.
“The government prioritises basic infrastructure in Bengaluru, which plays a key role in the state’s economy. The annual grant of Rs 3,000 crore will be increased to Rs 7,000 crore in 2025-26” he said.
A new Special Purpose Vehicle (SPV) will be created to manage these funds and implement key infrastructure projects. This shifts the responsibility for major developmental works away from BBMP, which has faced criticism for the city’s crumbling infrastructure.
The CM also said the government is working to ease pressure on Bengaluru by developing second- and third-tier cities.
Metro to Devanahalli
The budget includes plans to extend the Metro line from Kempegowda International Airport to Devanahalli. Siddaramaiah said the government plans to add 98.6 km of new metro routes in the next two years.
“The government is also planning to extend the Metro network up to Devanahalli” he said.
At present, Bengaluru Metro operates across a 79.65 km network with a daily ridership of around 8.5 lakh commuters.
On the long-pending Peripheral Ring Road (PRR) project, Siddaramaiah said land acquisition has begun with dedicated teams in place. “A Rs 27,00- crore plan has been drawn up to build a 73 km PRR, now renamed the ‘Bengaluru Business Corridor,’ with assistance from HUDCO Bank” he said.
He said Bengaluru’s Majestic bus stand will be redeveloped using a public-private partnership (PPP) model to create a modern transport hub with a commercial complex.
“A new satellite bus stand will also be built at KR Pura in Bengaluru East under the PPP model to ease congestion” he said. A total of 2,381 diesel buses and 716 electric buses will be inducted into the state’s four road transport corporations in 2024-25.
“The following year, priority will shift to electric buses, with a target of inducting 14,750 e-buses under PM e-DRIVE, PM-eBus Sewa, and externally aided projects, 9,000 of which will be allocated to BMTC. Additionally, 1,000 new diesel buses for all four corporations will be added under the Gross Cost Contract (GCC) model” he said.

D K Shivakumar’s pet projects get a push
Several pet projects of Deputy CM and Bengaluru Development Minister D K Shivakumar, under the ‘Brand Bengaluru’ initiative have been included in the budget.
“Bengaluru, as the state’s largest revenue contributor, will see major infrastructure, service delivery, and traffic management improvements” said Siddaramaiah.
He said the government has guaranteed Rs 19,000 crore to BBMP for the North-South and East-West tunnel corridors, estimated to cost Rs 40,000 crore.
For ‘Brand Bengaluru,’ Rs 1,800 crore has been allocated for 21 schemes in 2024-25. To reduce congestion, major roads will be made signal-free, and a 40.5 km double-decker flyover will be built alongside Namma Metro Phase 3 for Rs 8,916 crore.
Additionally, Rs 3,000 crore will be spent on building 300 km of roads using canal buffer zones, while 460 km of arterial and sub-arterial roads will be developed for Rs 660 crore. Another 120 km of flyovers and grade separators are also planned.
He said that the Rs 413 crore ‘Comprehensive Health Programme’ will bring Bengaluru up to global health standards. Additionally, Rs 3,000 crore will be provided to BBMP and BWSSB for developing a systematic drainage network and sewage treatment plants (STPs) to address climate change-induced flooding.
BWSSB will also implement a public-private partnership (PPP) model to generate biogas-based income and carbon credits from STP waste.
Under ‘Brand Bengaluru – Green Bengaluru,’ BBMP is working on rejuvenating 14 lakes at a cost of Rs 35 crore, while the Bengaluru Development Authority is reviving the Varthur and Bellandur lakes for Rs 234 crore.