L&T Exit Hits Bengaluru Rail Project, Sparks Political Row

04 Aug 2025 CW Team

Bangalore Central MP P.C. Mohan called the exit a “betrayal” of the people of Bengaluru. “L&T exits Bengaluru Suburban Rail Corridors 2 and 4 citing only 8.28 per cent land handover in two years. K-RIDE failed because the State Government did not clear land in time. This delay betrays Bengalureans. The Congress Government must fix K-RIDE and remove land hurdles immediately,” he posted on social media.

Echoing similar sentiments, Bangalore South MP Tejasvi Surya attributed the collapse to a lack of urgency. “The Bengaluru Suburban Railway Project is struggling due to @KridePrm’s bureaucratic chaos,” he stated. “This reflects a broader governance failure and absence of initiative at the state level.”

L&T formally terminated its contract for Corridors 2 and 4 and submitted a closure report, citing the state’s failure to provide adequate encumbrance-free land. Since the Letter of Acceptance was issued in August 2022, only 8.28 per cent of usable land had been handed over, leading to cost overruns, idle labour and equipment, and stalled progress.

In its letter to the Rail Infrastructure Development Company (Karnataka) Ltd (K-RIDE), L&T stated that continued delays rendered further construction unviable. The company has now approached the Commercial Court in Bengaluru, which has issued an interim injunction preventing K-RIDE from invoking L&T’s bank guarantees.

L&T is also seeking compensation of approximately Rs 5 billion for Corridor 2 and Rs 1.5 billion for Corridor 4, according to a report by The New Indian Express.

This development marks a major setback for the Rs 157.67 billion BSRP, which was sanctioned in October 2020 with a planned completion timeline of six years.

The withdrawal of Larsen & Toubro (L&T) from two major corridors of the Bengaluru Suburban Railway Project (BSRP) has drawn strong political backlash, with BJP Members of Parliament accusing the Congress-led Karnataka government of bureaucratic inefficiency that has impeded the city’s much-anticipated transit initiative.Bangalore Central MP P.C. Mohan called the exit a “betrayal” of the people of Bengaluru. “L&T exits Bengaluru Suburban Rail Corridors 2 and 4 citing only 8.28 per cent land handover in two years. K-RIDE failed because the State Government did not clear land in time. This delay betrays Bengalureans. The Congress Government must fix K-RIDE and remove land hurdles immediately,” he posted on social media.Echoing similar sentiments, Bangalore South MP Tejasvi Surya attributed the collapse to a lack of urgency. “The Bengaluru Suburban Railway Project is struggling due to @KridePrm’s bureaucratic chaos,” he stated. “This reflects a broader governance failure and absence of initiative at the state level.”L&T formally terminated its contract for Corridors 2 and 4 and submitted a closure report, citing the state’s failure to provide adequate encumbrance-free land. Since the Letter of Acceptance was issued in August 2022, only 8.28 per cent of usable land had been handed over, leading to cost overruns, idle labour and equipment, and stalled progress.In its letter to the Rail Infrastructure Development Company (Karnataka) Ltd (K-RIDE), L&T stated that continued delays rendered further construction unviable. The company has now approached the Commercial Court in Bengaluru, which has issued an interim injunction preventing K-RIDE from invoking L&T’s bank guarantees.L&T is also seeking compensation of approximately Rs 5 billion for Corridor 2 and Rs 1.5 billion for Corridor 4, according to a report by The New Indian Express.This development marks a major setback for the Rs 157.67 billion BSRP, which was sanctioned in October 2020 with a planned completion timeline of six years.

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