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.

Infrastructure Energy

19 Sep 2025

J&K CM Rules Out Power Privatisation, Focuses on Sector Reform

Jammu and Kashmir Chief Minister Omar Abdullah has dismissed speculation regarding privatisation of electricity in the Union Territory, emphasising that his priority is to strengthen and reform the power sector.“We are not discussing privatisation. By reducing losses, improving billing efficiency, and enhancing revenue, there will be no need for it. My vision is to strengthen and reform the power sector in J&K,” Abdullah stated.He addressed the gathering at the 58th Engineers’ Day at SKICC on Monday evening, an event honouring Bharat Ratna Sir M Visvesvaraya for his pioneering contri..

Infrastructure Urban

19 Sep 2025

Mumbai’s Sassoon Dock to Get Tech-Driven Modernisation with Finland

The Maharashtra government, in collaboration with Finland, will modernise Mumbai’s historic Sassoon Dock using advanced technology, state minister Nitesh Rane announced on Wednesday.Rane met a delegation of Finnish officials and representatives of Finnish companies at the dock to discuss strategic plans for upgrading the facility in south Mumbai, according to an official statement.Built in the 19th century, Sassoon Dock is one of Mumbai’s oldest and busiest fishing harbours. Operations currently exceed its original capacity, raising concerns over hygiene, odour, fish handling standards, an..

Infrastructure Energy

19 Sep 2025

Agarwal Industrial Wins Rs 3.3 Billion IOCL Bitumen Tender

Agarwal Industrial Corporation rose 3.84 per cent to Rs 945.65 after announcing it had secured a prestigious tender from Indian Oil Corporation (IOCL) worth Rs 3.3 billion.In a regulatory filing during market hours, the company confirmed it had won the tender to supply Bulk Bitumen (VG-30 and VG-40 grades) to IOCL’s Kakinada locations.The firm quantity under the award totals around 60,500 tonnes across 11 parcels, while the optional quantity is approximately 33,000 tonnes across six parcels. This brings the total awarded quantity to roughly 93,500 tonnes. At current market prices, the firm o..