₹7,000 crore grant every year; Guarantee for tunnel road loan
Government's financial strength for BNG mega projects
Kere Manjunath ಕೆರೆ ಮಂಜುನಾಥ್
Bengaluru: The state government, which has provided relief to the financial crunch faced by the Bruhat Bengaluru Mahanagara Palike to undertake mega projects in the city, has provided financial strength to build tunnel roads and flyovers.
The projects announced in the budget for Bengaluru, including tunnel roads, flyovers, grade separators, and 21 projects under the 'Brand Bengaluru' concept, have been announced frequently in the last budget and subsequent periods. Deputy Chief Minister D.K. Shivakumar had also often spoken about government grants and guarantees for mega projects. Chief Minister Siddaramaiah has announced and authorized such projects and grants and loan guarantees in the budget.
Dozens of flyovers and underpasses have been planned to ease traffic in the BBMP area. However, BBMP did not have the financial capacity to spend on them. The corporation had to depend on the ₹3,000 crore provided by the government every year under the ‘Capital Support for Special Infrastructure’ scheme to manage major projects. Hence, there was anxiety when new projects had to be undertaken. Chief Minister Siddaramaiah, who has removed such anxieties, has made everything easier by providing its own grant and loan guarantee for each major project.
The ₹3,000 crore under the ‘Capital Support for Special Infrastructure’ scheme has been increased to ₹7,000 crore. Since it has been said that a ‘Special Purpose Vehicle’ (SPV) will be set up to look after the projects to be managed under this grant, accountability has been fixed. Through this, the projects for which the ₹7,000 crore grant has been allocated will be available under one platform. It is a good plan that the construction of a 120 km long flyover and grader separators will be managed by the SPV.
Furthermore, the city’s much-awaited tunnel road has been given a clear shape in the budget. The BBMP will avoid mortgaging its assets as the government has said that it will guarantee ₹19,000 crore of the ₹40,000 crore required for the East-West and North-South tunnel road corridors.
The projects under the ‘Brand Bangalore’ concept have been reiterated in the budget. The development of 460 km of road network for which the tender process has been completed has also been proposed. The scheme to provide grants for three years to make the city a city of international health standards can improve the health facilities of the city residents if implemented at least this time.
Although the sewerage, STP system development, our metro line, and Bangalore Business Corridor projects are all old, the steps taken for their implementation and information on taking loans have been announced and made official in the budget.
Overall, Chief Minister Siddaramaiah’s budget for 2025-26 is a joy for Bengaluru. The income of BBMP is in terms of taxes. About four thousand crores are coming from this, and the projects should have been carried out from there. However, from the next financial year, four thousand crores will come mostly from the government, and huge projects will be implemented. The state budget has given a huge contribution to BBMP this time.