Siddaramaiah Seeks Rs 100 billion for Karnataka’s Urban Infrastructure

03 Dec 2024 CW Team

Karnataka Chief Minister Siddaramaiah met with Prime Minister Narendra Modi in New Delhi to request over Rs 210 billion for the state’s development, including Rs 100 billion under the AMRUT scheme for urban infrastructure. Highlighting funding shortfalls, Siddaramaiah called for increased financial support to address critical infrastructure needs and agricultural concerns. At Karnataka Bhavan, Siddaramaiah criticised the 58% reduction in National Bank for Agriculture and Rural Development (Nabard) assistance for 2024-25, which has curtailed subsidised loans for farmers. He explained that the shift to borrowing from commercial banks charging 10% interest has placed a financial strain on farmers, urging Union Finance Minister Nirmala Sitharaman to restore Nabard’s support for interest-free crop loans. The CM also emphasised the pending Rs 53 billion allocation for the Upper Bhadra Project announced in the 2023-24 Union Budget, urging the Centre to expedite the release under the Accelerated Irrigation Benefits Program (AIBP). Siddaramaiah further highlighted the importance of projects like Mekedatu on the Cauvery River and Kalasa-Banduri on the Mahadayi River for agricultural and water management in Karnataka. With Karnataka rapidly urbanising, Siddaramaiah sought additional funding for second-tier cities, pointing out that the state’s Rs 20 billion allocation under the Mahatma Gandhi Nagar Vikas Yojana was insufficient. He appealed for Rs 100 billion under AMRUT or similar schemes to bolster urban infrastructure. Additionally, the CM criticised the 15th Finance Commission’s recommendations, which reduced Karnataka’s tax devolution share by 1%. He called for implementing Rs 54.95 billion in pending funds and an additional Rs 60 billion for projects like the peripheral ring road. Siddaramaiah stressed the need for equitable tax devolution in the upcoming 16th Finance Commission, citing Karnataka’s substantial contribution of over Rs 4 trillion to the central tax pool, while receiving only Rs 500–Rs 600 billion in return. Deputy Chief Minister DK Shivakumar, Urban Development Minister Byrathi Suresh, and Energy Minister KJ George were also present at the meeting. (Business Line)

Infrastructure Urban

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