Bengaluru: Chief Minister DK Shivakumar on Friday urged Prime Minister Narendra Modi to expedite the release of Rs 22,400 crore in drought relief to Karnataka, address the demands of sugarcane growers and strengthen Centre-state cooperation in sharing the financial burden of infrastructure projects, particularly Metro rail expansion.
Raising these issues during the inauguration of Bengaluru Metro’s Pink Line at the Indian Institute of Management Bangalore (IIMB), Shivakumar also called for a more equitable funding arrangement for Metro projects, faster clearances and affordable long-term financing.
“Karnataka had recorded its second-lowest rainfall in 70 years, with 226 of the 240 taluks declared drought-hit. Crops over 58 lakh hectares had been damaged, causing estimated losses of Rs 62,482 crore. The state had sought Rs 22,400.58 crore under the National Disaster Response Fund (NDRF),” he said, appealing to the Prime Minister to release the assistance at the earliest to help farmers.
The Chief Minister also raised the concerns of sugarcane growers, who are demanding Rs 5,500 per tonne for the 2026-27 season against the Fair and Remunerative Price (FRP) of Rs 3,650 per tonne. He pointed out that the minimum support price of sugar had remained unchanged at Rs 31 per kg since 2019 and sought a fair share for Karnataka in ethanol allocation.
Emphasising the need for greater cooperation between the Centre and the state, Shivakumar said the two governments should share the financial responsibilities of development projects more equitably.
He said Metro projects were generally taken up on a 50:50 cost-sharing basis, but the actual burden on states was considerably higher. In Bengaluru’s case, Karnataka bears the cost of land acquisition, utility shifting, 100 per cent of state taxes, 50 per cent of central taxes, repayment of foreign loans and most cost escalations.
“Everyone shares the benefits of Metro connectivity. Therefore, its financial burden must also be shared fairly,” he said.
He urged the Centre to introduce time-bound approvals for Metro projects, assess costs based on prevailing market rates and share additional expenditure arising from approval delays. He also called for sharing operational losses and foreign exchange risks on overseas loans, besides providing affordable long-term loans in Indian rupees.
The Chief Minister proposed setting up a national technical institution to standardise technologies for Metro projects across the country, speed up approvals, promote indigenous technology and ensure passenger safety.
He also highlighted Karnataka’s achievements in industry, technology and research, recalling the state’s pioneering contributions to electricity generation, aircraft manufacturing, industrial policy and the startup ecosystem.
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