Namma Metro Funding Row: Tejasvi Surya Challenges DK Shivakumar's 84% Claim, Says Centre Contributes 54% to Bengaluru Metro

DK Shivakumar Claims Karnataka Bears 84% of Metro Expenditure

Deputy Chief Minister DK Shivakumar recently stated that the Karnataka government plays the leading role in financing the development and expansion of Namma Metro.

According to Shivakumar, the state's contribution extends beyond the construction of Metro lines. It also includes land acquisition, rehabilitation and resettlement, state taxes, interest during construction, loan repayments and operational expenses.

Greater Bengaluru Development Minister Krishna Byre Gowda presented a detailed financial breakdown of the expenditure.

According to the state government's calculation, the combined approved and estimated cost of Metro Phases 1, 2, 2A, 2B and 3 stands at ₹77,891 crore.

Of this amount:

• Karnataka government's contribution: ₹65,291 crore (83.8%).

• Union government's contribution: ₹12,600 crore (16.2%).

The state government argues that the financial responsibility of building and maintaining Namma Metro goes far beyond the conventional funding arrangement between the Centre and the state.

DK Shivakumar has also emphasised that Karnataka continues to bear the responsibility of supporting the network from land acquisition to day-to-day operations.

Tejasvi Surya Rejects the 84% Claim

BJP MP Tejasvi Surya has strongly disputed the Karnataka government's calculation.

Addressing a press conference on November 12, Surya accused the Congress government of presenting a misleading picture of the Metro funding structure.

He claimed that the state government had included approximately ₹28,958 crore in foreign loans arranged through international financial institutions and backed by the Centre's sovereign guarantee as part of Karnataka's contribution.

According to Surya, these loans were availed by Bangalore Metro Rail Corporation Limited (BMRCL), which is responsible for servicing and repaying them.

He argued that loans cannot automatically be classified as direct financial contributions from the Karnataka government merely because they are routed through BMRCL.

Citing BMRCL's approved funding plan, Surya presented a different calculation:

• Union government's share: 53.35%.

• Karnataka government's share: 46.65%.

He also pointed out that BMRCL is a 50:50 joint venture between the Union and Karnataka governments, with both contributing ₹9,164 crore each as equity.

Surya accused the Congress government of confusing the financial contributions of BMRCL with direct expenditure from the state government's budget.

The ₹28,958 Crore Foreign Loan Controversy Explained

The biggest disagreement between the BJP and Congress concerns the treatment of foreign loans.

The Karnataka government has included ₹28,958 crore in foreign loans in its overall calculation of the state's financial contribution.

Tejasvi Surya argues that these loans were arranged through international financial institutions with the Centre's sovereign guarantee and are being serviced by BMRCL.