Karnataka says loan repayments must count as State’s metro contribution

A view of the Namma Metro Pink Line in Bengaluru on Thursday.

The Karnataka government countered claims made by Bengaluru South MP Tejasvi Surya, who argued that the Centre’s contribution to Namma Metro was higher than what the State government had projected.

Citing the Bangalore Metro Rail Corporation Limited’s (BMRCL) approved funding plan for Phases I, II, 2A, 2B and III, Karnataka government sources put the combined estimated expenditure at ₹77,891 crore. Of this, Karnataka’s contribution is ₹65,291 crore (83.8%), while the Centre’s share is ₹12,600 crore (16.2%), government sources said.

They argued that foreign loans worth ₹28,958 crore, arranged through the Centre, should be accounted for under Karnataka’s contribution, as the State government is responsible for their repayment. They alleged that counting these loans as the Centre’s contribution while separately accounting for Karnataka’s repayment amounts to double counting.

According to the sources, Karnataka has so far repaid ₹4,502 crore of the ₹5,018 crore in loan principal repaid by BMRCL, accounting for approximately 90% of the total repayments, while the Centre has contributed nothing towards these repayments.

Karnataka government sources also cited ₹1,069 crore in cash-loss support provided by the State to BMRCL. They further claimed that even if foreign loans are excluded from the calculation, Karnataka’s share stands at 74.2%, against 25.8% for the Centre.

Separately, Forest, Ecology and Environment Minister Ramalinga Reddy, in a press note on the Pink Line inauguration, said the original estimated cost of the 21.26-km Kalena Agrahara-Nagawara corridor was ₹8,730 crore, which subsequently increased to ₹17,346 crore. The State government’s share in the revised cost is approximately ₹12,000 crore, he said.

Mr. Reddy also recalled that the Union Cabinet approved Phase II of Namma Metro on January 30, 2014, during the UPA government’s tenure, with the Gottigere-Nagawara corridor, now being developed as the Pink Line, included in the project.

The inauguration on November 13 will mark the opening of the 7.5-km elevated section between Kalena Agrahara and Tavarekere.

Greater Bengaluru Development Minister Krishna Byre Gowda on Thursday alleged that his speech was removed from the final programme list for the Pink Line inauguration.

In a post on X, the Minister said that his speech had been included in the draft programme but was dropped from the final list circulated on Wednesday night.

Linking the development to Karnataka’s demand for a larger share of funding for metro projects, Mr. Gowda said the State was being treated unfairly for seeking its rightful share despite bearing the bulk of the capital expenditure.

Describing the removal of his speech as a consequence of raising Karnataka’s concerns, he said that the decision would not deter him from working for Bengaluru’s development. “You may cut my speech, but you cannot stop me from working for Bengaluru’s development,” he added.