Bengaluru: The cash-strapped Karnataka government is looking to mobilise Rs 50,000 crore over the next two years through a combination of budgetary allocations, disinvestment and PPP funding to execute development works before the 2028 elections, ThePrint has learnt.
The new proposal has yet to be brought before the state cabinet led by Chief Minister DK Shivakumar. The plans, officials said, are to deploy the newly-raised capital toward three main verticals: the Public Works Department, rural roads, and urban development.
“Around Rs 20,000 crore will be through the budget and we will raise the remainder through toll operator transfers, Public Private Partnerships (PPP) and disinvestments,” said a senior government official, requesting anonymity.
The chief minister has announced several big-ticket development projects, which would entail an expense of Rs 1.5 lakh-crore in Bengaluru, including Rs 40,000 crore for the tunnel roads, flyovers, elevated highways and other projects.
In a Cabinet meeting held in Mangaluru on 18 September, Shivakumar announced Rs 32,611-crore worth projects, including Rs 13,369 crore Karavali package and
Rs 10,800 crore through PPP mode.
However, it was during this meeting that the state’s finance department raised an alarm, citing limited fiscal space and the need for a “realistic and prudent” approach to funding.
With just two years to go for the elections, and the political appeal of its flagship Guarantee schemes fading, the Shivakumar-led government is under tremendous pressure to allocate funds for development and infrastructure activities.
With nearly Rs 52,000 crore required annually to fulfil the Congress government’s five guarantees, Shivakumar has few options but to manage funds in any way possible to execute large infrastructure projects—in Bengaluru and other parts of the state—as the Congress looks to retain power in the 2028 assembly elections.
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PPP, toll operator transfers
The Karnataka government is looking to revive its earlier plans to build the ‘Twin Towers’ in Bengaluru’s Anand Rao Circle, which did not find many takers when first announced last year.
“There are about eight acres belonging to the Health & Family Welfare department in Anand Rao Circle. We want to develop this under the PPP model which has the potential to create around 20-25 lakh square feet of office space. The government can keep one tower and the other will be given to the developer,” the official said.
The government is looking to move all its offices, currently operating out of private and rented buildings into this one tower. The official said this would help reduce costs over time and bring all services under one roof. The developers, on the other hand, can monetise and recover their investments by letting out office spaces which would help redevelop and modernise the entire Majestic locality, the officer said.
Additionally, the government is considering the Toll-Operate-Transfer (TOT) model which will involve putting public-funded projects up for bidding, allowing the winning bidder the right to collect tolls on major roads and other highways.
Earlier, the Congress government considered reviving a long-pending plan to develop a network of satellite towns on the outskirts of Bengaluru, beginning with Bidadi, in a bid to shore up the state’s coffers, thePrint had reported.
However, this township has since hit a roadblock with farmers protesting the acquisition of lands.
Other plans to mobilise resources include auctioning unused liquor licences and increasing deadlines of popular jaunts to help extend business hours.
(Edited by Ajeet Tiwari)
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