The five city corporations under the Greater Bengaluru Authority (GBA) will be allowed to raise funds for infrastructure projects through municipal bonds, the Chief Minister announced on Friday.
While presenting the state budget for 2026-27, Siddaramaiah said companies will mobilize resources based on their financial capacity. Although the budget listed several infrastructure measures for the state capital, most of them related to projects already underway or expansions of existing programs and not completely new initiatives.
The Prime Minister noted that financial support for the city had increased significantly in the previous fiscal year. “In 2025-26, the state government has increased the Bengaluru Development Grant from $3000 Crores $7000 Crores. This scholarship will continue this year as well. Notable infrastructure projects mentioned in the letter include a plan to expand durable road surfaces throughout the city at an estimated cost of $1.6 million $3,000 crore in the next three years and expansion of the Metro network has grown by 41 km.
The system currently operates over 96 kilometers and carries around 100,000 passengers daily. “A total of 41 km of additional metro lines are proposed to be completed during the financial year 2026-27. This will benefit around 1.5 million commuters daily,” the Prime Minister said.
The Prime Minister also noted the investment made in the project so far. “outside $Rs 67,460 crore expenditure has been incurred so far, of which the state’s share is $59,376 crore and the central share is $8,084 crore.”
A pedestrian facility is also planned along the Outer Ring Road Metro corridor. “A 9-km-long pedestrian walkway will be constructed along the metro bridge on the Outer Ring Road at an estimated cost $160 Crores.”
Among the major traffic-related projects mentioned in the letter was the first phase of the Bengaluru Business Corridor, a 73-km road between Tumakuru Road and Hosur Road, where land acquisition is currently underway.
The government also reiterated its plans to construct tunnel corridors through the city. “The North-South Corridor Project from Hebbal Junction to HSR Layout Silk Board and East-West Corridor Project from KR Puram to Mysore Road, covering a total of 40 km of tunnel roads, have been approved at an estimated cost of Rs. $40,000 crore under BOOT model.
