Shivakumar Pushes Modi For Better Union-State Fund Sharing For Metros

Bengaluru: Karnataka Chief Minister DK Shivakumar on Friday urged Prime Minister Narendra Modi to introduce a more equitable Centre-State funding mechanism for Metro rail projects, expedite approvals and share the financial burden of infrastructure development.

He also urged the prime minister to expedite drought relief assistance to the state.

Addressing the gathering at the inauguration of the Metro Pink Line at the Indian Institute of Management Bangalore (IIMB), the CM outlined Bengaluru's ambition to expand its Metro network to 500 km in the coming years and said the inauguration marked a significant milestone in the city's public transport journey, taking the Namma Metro network beyond 100 km.

Describing Karnataka as a state with an unmatched legacy of pioneering achievements, Shivakumar highlighted its contributions to India's industrial, technological and scientific growth.

Highlighting Bengaluru's infrastructure requirements, Shivakumar said Metro connectivity was among the most critical components of the comprehensive strategy drawn up to address the city's traffic congestion.

However, he pointed out that although Metro projects were structured as 50:50 partnerships between the Centre and states, the actual financial burden on state governments was considerably higher.

In the case of Bengaluru Metro, the CM said that Karnataka bears the cost of land acquisition, shifting of utilities, 50 per cent of Central taxes, 100 per cent of state taxes, repayment of the entire foreign loan and most cost escalations.

"The benefits of Metro are shared by everyone. So, the financial responsibility must also be shared fairly," he said, urging the Centre to reconsider the existing funding arrangement.

The chief minister sought time-bound approvals for Metro projects, regular reviews under the PRAGATI mechanism and the PM's direct intervention to address delays in planning, approvals and construction.

He also called for project costs to be assessed based on actual city-specific conditions rather than uniform national averages, pointing out that detailed project reports often became two to three years old by the time they received Central approval.

Shivakumar proposed that additional costs arising from approval delays be shared equitably, with each government bearing its respective tax burden.

He also sought a mechanism for the Centre and states to share operational cash losses and foreign exchange risks arising from external loans, citing the Delhi Metro funding arrangement as an example.

The CM further advocated affordable long-term loans in Indian rupees through national financial institutions and proposed establishing a single national technical institution for Metro projects.

"Such an institution could maintain a list of approved technologies and systems from which Metro projects across the country could make selections based on technical committee recommendations, helping accelerate approvals, promote indigenous technology and ensure passenger safety," he said.

Shivakumar said Karnataka intended to expand Bengaluru's Metro network to 500 km in the coming years.

Quoting former President A P J Abdul Kalam's words, "Dream, dream, dream", he said the vision had to be translated into reality through proper planning and timely decisions. "A better Metro network means less time in traffic and more time with families," he said.

He also raised important issues concerning the state. The chief minister urged the prime minister to expedite drought relief assistance to the state and said Karnataka was facing a severe drought, having received the second-lowest rainfall in 70 years.

According to him, of the state's 240 taluks, 226 had been declared drought-affected, while nearly 58 lakh hectares of crops had suffered damage. The estimated losses stood at Rs 62,482 crore.

The state had sought Rs 22,400.58 crore in assistance under the National Disaster Response Fund (NDRF), and Shivakumar appealed to the prime minister to ensure its early approval and release to support affected farmers.

Drawing the PM's attention to the concerns of sugarcane farmers in Karnataka, he said farmers were demanding Rs 5,500 per tonne against the Fair and Remunerative Price (FRP) of Rs 3,650 per tonne for the 2026-27 season.

He also pointed out that the minimum support price of sugar had remained unchanged at Rs 31 per kg since 2019 and sought a fair share of ethanol allocation for Karnataka.

He emphasised the need for greater cooperation between the Centre and states and said Karnataka was ready to fulfil its responsibilities and work closely with the union government.

Invoking the philosophy of social reformer Basavanna's Kayakave Kailasa and the Bhagavad Gita's message of performing one's duty with sincerity, he said the Pink Line inauguration reflected the hard work and dedication of thousands of engineers, workers and officials.

Quoting poet Kuvempu's vision of Vishwamanava, he called for governments to rise above narrow boundaries and work towards the welfare of all.

"A Metro line connects two places, but cooperation connects governments and people. When the Centre and states move together, the nation moves forward," he said.

The people's mandate gave political parties the responsibility to govern, but their ultimate goal should always be to serve the people and improve the quality of life of every citizen of the country, he added.

Karnataka Governor Sudha Yadav, Bengaluru Development Minister Krishna Byre Gowda and Bengaluru South MP Tejasvi Surya were also present at the occasion.