Budget earmarks Rs 600 crore for new rail projects, suburban rail gets Rs 500 crore

Chief Minister Siddaramaiah has announced an allocation of Rs 600 crore in the 2026-27 state budget for the construction of nine new railway lines across the state. The projects will be implemented in coordination with Indian Railways under a cost-sharing model between the state and the Centre.

Presenting the budget in the Assembly, the Chief Minister said the railway projects are being taken up under a 50:50 cost-sharing arrangement with the Union government. According to the government, work on seven railway projects has already progressed, with about Rs 2,950 crore spent on land acquisition and around Rs 2,682 crore on construction activities.

The proposed railway projects include new lines connecting Ginigera–Raichur, Tumakuru–Rayadurg, Chikkamagaluru–Belur, Kudachi–Bagalkot, Gadag–Wadi, Tumakuru–Davangere, Belur–Hassan, Shivamogga–Shikaripura–Ranebennur and Dharwad–Kittur–Belagavi.

The Chief Minister said the cost of construction and land acquisition for the Ginigera–Raichur and Tumakuru–Rayadurg lines will be shared equally between the state and the Union government. However, for the remaining seven projects, the Karnataka government will bear the entire cost of land acquisition and 50 percent of the construction expenses.

The state government also announced a major allocation for the Bengaluru Suburban Rail Project. An amount of Rs 500 crore has been earmarked in the current financial year for the project.

Officials said land acquisition for Corridor-2 between Benniganahalli and Chikkabanavara has already been completed, and construction work is progressing. Land acquisition for Corridor-4 between Heelalige and Rajanukunte is underway, with the government targeting completion of the two corridors by December 2030.

Additionally, Rs 100 crore has been allocated this year for railway line doubling projects between Baiyappanahalli–Hosur and Yeshwantpur–Channasandra.