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Karnataka budget focal points echo growth and development for the state.
Karnataka budget focal points echo growth and development for the state.

April 14, 2023

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As part of the budget, the state government plans to construct a 5 km elevated road from Tin Factory to Medahalli at a cost of INR 350 crore.

Ahead of the elections in May 2023, Karnataka Chief Minister Basavaraj Bommai presented the interim budget for 2023-24. The city of Bengaluru is one of the fastest-growing commercial hubs in the country that is attracting people from all over the country. With increased disposable income, the young workforce seeks better quality of life and higher standard of living, thereby quality infrastructure and city amenities are essential. The budget reflected a number of positive announcements towards better sanitation, healthcare, infrastructure, technology and housing, among others. 

Here are some of the key highlights from the Karnataka Budget.

As part of the budget, the state government plans to construct a 5 km elevated road from Tin Factory to Medahalli at a cost of INR 350 crore. This is expected to provide a boost to the residential and commercial development in the region and ease congestion as well. 

The proposed construction of an integrated flyover from Yeshwanthpur railway station to Mathikere and BEL Road is expected to provide direct access between these busy regions, thereby reducing the commuting time significantly. Further, development of 300 km of arterial and sub-arterial roads in the city at a cost of INR 450 crore was proposed. 

Nearly 120 km of roads are proposed to be white-topped at a cost of INR 1,000 crore, and INR 300 crore has been earmarked in the budget to repair roads in 110 villages in the Bruhat Bengaluru Mahanagara Palike (BBMP). And approximately, INR 1,800 crore has been allotted for the development of 195 km of drainage and culverts to avoid flooding in the city.

Additionally, the construction of a Satellite Town Ring Road (STRR), 288 km in length at a cost of INR 13,139 crore, was approved by the Centre. The state government has agreed to pay 30% of the land acquisition cost required for this project, which is expected to expedite its completion. Once completed, STRR will provide seamless connectivity to Bangalore city from nearby growth centers.  

Apart from core civic infra development, there is also a budget for setting up a ‘start-up park’ near Bengaluru Airport. The city is already known for the IT hub that it is, and this is expected to further augment Bengaluru’s branding as a leading destination that caters to the ‘start-up ecosystem’. 

The setup of cloud-based Data Center at an outlay of INR 590 crore has been proposed for the benefit of various state departments and PSUs. To promote industries, a Plug and Play Industrial Park around Bengaluru for early commencement of the operations of Multinational Companies has been proposed. These projects reiterate the extensive use of technology promoted by the state, thereby reaffirming Bengaluru as the silicon city of India. 

With more youth migrating to Bengaluru, the state aims at constructing 5 lakh houses in the current year with priority to housing in aspirational taluks, at an allocation of INR 500 crore. There is also action to develop and distribute 30,000 properties through the Housing Board. Out of this, 10,000 sites are to be distributed to Economically Weaker Sections under the “Namma Nele” programme. Also, construction of Integrated township in Mysuru, Chikkaballapura, Chitradurga, Haveri, Kolar and Ramanagara was proposed with a vision to promote sustainable development of cities. 

Aimed at enhancement of the state, the government has also envisaged funds to be deployed for sub-urban rail project, world bank assisted flood control project, sewage/effluent treatment project, drinking water supply project, development of schools, healthcare facilities and most importantly ‘she-toilets’ for women.  

If carried out as anticipated, the state of Karnataka, especially the city of Bangalore is headed towards steady growth. 

About the Author

Digbijay Das is closely associated with the real estate industry for close to a decade and half wearing the hat of a property consultant. Starting his journey as a Research & Business Analyst specialist, over the years he gained in-depth experience in property consulting, property advisory and valuation assignments, investing in relationships with a diverse set of clients that include developers, investors as well as occupiers with property portfolios spread across Southern India.


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