Siddaramaiah Requests ₹10,000 Crore from PM Modi for Karnataka’s Infrastructure Development.

Karnataka Chief Minister Siddaramaiah met with Prime Minister Narendra Modi recently, requesting the release of over ₹21,000 crore for the state’s development. This included a plea for ₹10,000 crore under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) to enhance urban infrastructure across Karnataka.

In a detailed memorandum, Siddaramaiah raised concerns over a 58% reduction in assistance to the National Bank for Agriculture and Rural Development (NABARD) in the current fiscal, which he said negatively impacts the state’s farming community. He emphasized that the reduction in subsidized loans for farmers could severely affect food production, both within Karnataka and across India.

Traditionally, NABARD provided loans to farmers at a 4.5% interest rate, with the state government offering subsidies for interest-free loans. However, under new central government directives, farmers are now required to borrow from commercial banks charging up to 10% interest. Siddaramaiah stressed that this policy shift benefits banks but burdens farmers, adding that only ₹2,340 crore has been allocated for 2024-25, compared to ₹5,600 crore for 2023-24. He has already requested Union Finance Minister Nirmala Sitharaman to increase NABARD assistance to prevent financial hardship for farmers.

Additionally, the CM called for the release of ₹5,300 crore allocated for the Upper Bhadra Project in the 2023-24 Union Budget, which remains pending. He also urged the quick approval of the Accelerated Irrigation Benefits Program (AIBP) to support irrigation projects in central Karnataka and highlighted the need for attention to the Mekedatu and Kalasa-Banduri projects.

Siddaramaiah, noting Karnataka’s rapid urbanization with 13 municipal corporations, requested ₹10,000 crore to support the development of second-tier cities. He pointed out that the ₹2,000 crore allocated under the Mahatma Gandhi Nagar Vikas Yojana over the next three years is insufficient for the state’s growing urban needs.

The Chief Minister also raised concerns about the 15th Finance Commission’s recommendations, which reduced Karnataka’s share of tax devolution by 1%. He urged Modi to ensure the implementation of two key recommendations—₹5,495 crore for state needs and an additional ₹6,000 crore for crucial infrastructure projects like the peripheral ring road and water source rejuvenation.

Siddaramaiah emphasized that in the upcoming 16th Finance Commission, states contributing significantly to the central tax pool should not be penalized by reduced devolution shares. He pointed out that Karnataka contributes over ₹4 lakh crore in taxes while receiving only ₹50,000-60,000 crore in return from the central government.

Also present at the meeting were Deputy Chief Minister DK Shivakumar, Irrigation Minister, Urban Development Minister Byrathi Suresh, and Energy Minister KJ George.

HBL