Karnataka will formally ask the Union government to increase its share of Bengaluru Metro funding, Greater Bengaluru Development Minister Krishna Byre Gowda said at a press conference, arguing that the Centre’s contribution has fallen sharply as the network has expanded. The request will be made during Prime Minister Narendra Modi’s Bengaluru visit on November 13, when he is scheduled to inaugurate the Metro’s elevated Pink Line.
Gowda said Karnataka had spent Rs 65,291 crore of the Rs 77,891 crore incurred on Bengaluru Metro so far, while the Centre had contributed Rs 12,600 crore. The Centre’s contribution therefore works out to about 16% of the total expenditure, according to figures cited by the minister.
The funding pattern has changed significantly across the Metro’s phases. The Centre provided 80% of the funds for Phase 1, but its share fell to 16% for Phase 2 and 14% for Phase 2A/2B, Gowda said. The state government has financed the remaining costs for these phases.
The minister said Karnataka also bears the full cost of land acquisition and project cost escalations. It is additionally responsible for repaying loans obtained from foreign lending agencies, as well as meeting any extra burden created by depreciation in the value of the rupee.
Gowda described the Centre as a facilitator of foreign loans rather than the final payer of that borrowing. He said Karnataka fully repays the loans and carries the associated financial burden. The state also absorbs the cash losses of Bangalore Metro Rail Corporation Limited, the agency responsible for operating the network.
According to the minister, Karnataka has paid Rs 1,046 crore towards BMRCL’s cash losses during the current financial year and will pay a further Rs 52 crore. He said the combined cost of construction, land acquisition, loan repayment, currency depreciation and operational losses had placed a disproportionate burden on the state government.
The funding dispute comes as Bengaluru continues to seek further Metro expansion. Gowda said greater financial support from the Centre would help the state expand the network and meet demand for public transport in a city that contributes substantial tax revenues. He also said Karnataka would continue expanding the Metro with its available resources if additional Union funding was not provided.
The state’s formal request will seek either a higher Union contribution to Metro projects or assistance to hedge the impact of rupee depreciation. Gowda said the state government could not control the currency’s value but was required to bear the resulting financial burden. The request is expected to be made during the Prime Minister’s November 13 visit to Bengaluru.
