With a view to attract more investment and create new jobs in the Silicon City, the state budget has focused on developing infrastructure in and around Bengaluru which includes expansion of metro, implementation of Cauvery stage 6 project and construction of arterial and subarterial roads.
The annual grant of Rs.3,000 crore being provided will be enhanced to Rs.7,000 crore in the current year for the development of Bengaluru. A new Special Purpose Vehicle will be established to utilize these grants and implement major developmental works on priority.
Besides improving road infrastructure and water facilities in the city, the government has got some big plans for IT, BT and Science and Technology.
Boosting IT, BT and Science and Technology
As per the Karnataka budget book 2025-26, Rs 1,000 crore grant has been allocated to launch LEAP program (Local Economy Accelerator Program) in cities other than Bengaluru. This program aims to simulate innovation and entrepreneurship. In the present financial year, Rs 200 crore has been allocated. This initiative also aims to create five lakh jobs across the state.
Other initiatives under LEAP program
1 Startup ecosystem will be developed in Mysuru, Mangaluru, Hubballi and Kalaburgi.
2 A lifecycle approach will be followed to set up Global Technology Centres, incubators and centre of excellence.
3 Rs 300 crore for Fund-of-Funds and a corpus fund of 100 crore for Deep-tech development will be earmarked.
The new IT Policy will be implemented for the year 2025 which focuses to develop cloud computing, development of emerging technologies. Further, the policy aims to expand IT sector to Tier-II and III cities to reinforce Karnataka’s position as a global tech hub.
With a special focus on AI, Rs 50 crore will be spent over the next five years to establish Centre for Applied AI for Tech Solutions (CATS). Not just AI, but the government has plans to spend Rs 48 crore over the next five years to develop a Quantum Research Park Phase-2 in collaboration with IISc, Bangalore.
The Karnataka Bio-technology Policy 2024-2029 that aims to attract investment of Rs 1,500 crore in the MSMEs and large scale industries. This will be implemented through an incentive of Rs 220 crore.
To strengthen the state’s leadership in Global Capability Centres, Global Innovation Districts will be developed by KEONICS in Mysuru, Belagavi, Dharwad and Bengaluru.
Kolar, Ramanagara, Chitradurga and Vijayanagara districts will be getting sub-regional Science centres at the cost of Rs 9 crore.
A state-of-the-art PCB park will be developed in Mysuru on 150 acres of land, creating a dedicated ecosystem for electronics manufacturing. The Sensor Tech Innovation Hub will be set up at a cost of Rs 99 crore in collaboration with the Government of India and in partnership with industries to encourage skill development.
Namma Metro to be expanded in the city
Currently, Bengaluru has only two operational metro lines which is Green and Purple line. Blue line, Pink line and Yellow line are still under construction. While the Purple line connects Whitefield to Challaghatta which is 43.49 kms long, Green line connects Nagasandra to Silk institute which is 33.5 kms long. Every day 8.5 lakh people commute through metro. Namma Metro is operating 68 stations along 79.65 km of rail network.
The government has envisaged to add 98.60 km additional routes to the network in the next two years. It is envisaged to extend the Metro network up to Devanahalli. A state-of-the-art Bengaluru Signature Park will be developed in Devanahalli in 407 acre area. An amount of Rs.50 crore has already been released to provide connectivity to this area for building a flyover under the state government funds.
Double decker flyover for all upcoming metro lines
Double decker flyover in the city is state government’s one of the ambitious projects. Therefore, Rs 8,916 crore has been allocated for the construction of 40.5 km double decker flyover along with Namma Metro Phase – 3 Project.
A network of 300 kms additional roads will be constructed at a cost of Rs.3,000 crore utilizing canal buffer zones. The arterial and sub-arterial road network in BBMP area measuring 460 km will be developed at a cost of Rs.660 crore. Flyovers and Grade Separators of length 120 km will be built in the Bengaluru city.
Rs. 27,000 crore plan has been prepared to build a 73 km road with the assistance from HUDCO Bank by renaming the long-pending Peripheral Ring Road project as ‘Bengaluru Business Corridor’. Land acquisition process has been started by forming separate teams.
Clean Mobility Policy to get a boost
Karnataka government has announced the Karnataka Clean Mobility Policy 2025-30. It is aimed towards attracting 50,000 crore investment for lean mobility automotive value chain and creating approximately one lakh new jobs.
To encourage EV vehicle manufacturing and usage, a testing track of international standards and a state-of-the-art EV cluster with common infrastructure will be established in Bengaluru at a cost of Rs. 25 crore.
Rs 1,800 crore for Brand Bengaluru
A whopping 1,800 cr has been allocated to 21 schemes under Brand Bengaluru project for 21 schemes during the FY 2024-25.
The government will provide BBMP and BWSSB with financial assistance of Rs. 3,000 crore for construction of a systematic drainage network and STPs to control climate change induced flooding in Bengaluru.
With the objective of obtaining biogas-based income and carbon credits by using waste generated in STP units, BWSSB will formulate a program in PPP model.
BBMP has substantially increased property tax collection by implementing various reforms. Adoption of online e-Khata and use of technology has resulted in simplified public service delivery along with an increase in revenue collection. BBMP Management) Rules, 2024 have also been notified for better regulation of the (Estate management and Corporation’s properties. All these reform measures have yielded an additional revenue of Rs. 4,556 crore. Further, implementation of Corporation’s Advertisement Bye-laws 2025 is expected to yield a further revenue of Rs. 750 crore.
The government has stood guarantee to BBMP for an amount of Rs. 19,000 crore for undertaking the North-South and the East-West corridors (tunnels) at a cost of Rs. 40,000 crore.
More water for Bengaluru
Kaveri Stage-V project with an additional water capacity of 775 MLD and constructed 2025-26 at a cost of Rs. 5,550 crore was dedicated to public in the year 2024-25. This has provided a water lifeline to 50 lakh residents in 110 villages.
Detailed Project Report will be prepared for the implementation of Kaveri Stage-6
Under the ‘Brand Bengaluru Green Bengaluru’ works related to 14 lakes are under progress through BBMP at a cost of Rs. 35 crore. Varthur and Bellandur lake rejuvenation works have been taken up at a cost of Rs. 234 crore by Bengaluru Development Authority.
Sub-urban railways to see more development
70 km of railway lines are intended to be doubled on the Baiyappanahalli-Hosur and Yeshwanthpur-Channasandra routes with a total estimated cost of Rs.812 crore. The State Government is providing Rs.406 crore for these doubling projects. These projects will be dedicated to public service during the current year.
Bengaluru Suburban Railway Project is being implemented at a cost of Rs. 15,767 crore. The project consists of 148 km length of rail network and 58 railway stations. Works for two corridors of the total four corridors are in progress. The tender process for the remaining two corridors will be completed and the project will be implemented in a time-bound manner.