Karnataka Budget: Major infra push, flood mitigation measures for Bengaluru

The government has increased the subsidy for the reconstruction of houses completely damaged by heavy rainfall to Rs 5 lakh. "Approval has been accorded for the reconstruction of 3,01,884 houses of various classes in the last four years, and Rs. 2,627 crore has been released for this till now," Bommai said in his speech.

To ensure the free flow of rainwater and prevent flooding, Rs 1,813 crore has been provided to develop 195 km of drainage and culverts.

Further, to mitigate the effects of climate change and control floods, a project with the assistance of the World Bank will be implemented at a cost of Rs 3,000 crore. As part of this project, sluice gates will be installed at all the tanks to control the speed and quantity of water-flow in the event of a flood.

Last September, floods in parts of Bengaluru wreaked havoc damaging more than 7,000 houses and inundating luxury bungalows on the city’s famous ``Billionare's Street." According to Bruhat Bengaluru Mahanagara Palike (BBMP), the city municipal corporation, the total loss incurred was more than Rs 300 crore.

Also Read: Karnataka Housing Board to launch 2,000-acre township in Bengaluru by mid-2023

Housing

About 38 Karnataka Housing Board projects have been pending for five years due to land disputes, ownership issues, and other reasons. "By changing the guidelines and overcoming the obstacles, 48,000 properties across 3,382 acres have been distributed," Bommai added.

In the current year, six housing projects have been completed by the Karnataka Housing Board comprising a total of 6,142 houses. "We plan to acquire approximately 2,000 acres of land for housing projects, and develop approximately 30,000 properties for distribution to the public," Bommai said while presenting the budget.

Additionally, the government has constituted a tribunal for fixing a uniform rate for land acquisition under Phase-3 of the Upper Krishna Project. "This would facilitate a speedy settlement of compensation to farmers and land owners," the Chief Minister added.

Also Read: Residential rentals in Bengaluru take a hit on job losses

Stamp duty collection

Bommai said that the revenue collection target for the Stamps and Registration Department for the year 2022-23 was fixed at Rs 15,000 crore, against which Rs 17,000 crore will be collected by the end of the fiscal, thus exceeding the target.

"This will be 13 percent higher than the budget estimate. A revenue collection target of Rs 19,000 crore has been given to the Stamps and Registration Department for the year 2023-24," he added.

Karnataka provided a rebate of 10 percent on the guidance value (the value of the property as determined by the government) during the period January 1, 2022, to March 31, 2022. "During this period, 82,784 documents were registered and revenue collection stood at Rs 4,343 crore. This is a record collection in a three-month period," Bommai said while presenting the budget.

Also Read: MC Exclusive: How a registration error is preventing conveyance of land titles to homebuyers in Karnataka

Infra push

The government also plans to develop 3,084 km of highways for Rs 1 lakh crore. This includes the Bengaluru-Chennai expressway costing Rs 5,486 crore, and the Bengaluru-Ramanagara-Mandya-Mysuru highway costing Rs 8,408 crore.

To facilitate the quick start of operations by corporates, Bommai added that the Karnataka Industrial Areas Development Board (KIADB) would set up world-class plug-and-play industrial parks around Bengaluru.

"Nine new railway lines are being implemented by the state government along with the Ministry of Railways on a 50:50 cost-sharing basis. The state government will bear the project cost, including the land acquisition cost," Bommai explained.

Shantanu Mazumder, Executive Director, Knight Frank, said that the stamp duty collected indicates the strong demand for real estate assets in the state.

"The allocation of Rs 9,698 crore for the development of Bengaluru city is going to boost overall real estate growth and address major issues related to traffic decongestion and civic infrastructure which the city has been facing, " he explained.

Mazumder also feels that the formation of a tribunal to fix uniform rates for land acquisition will smoothen the process, and additionally, the acquisition of land for housing projects will help develop those areas, thereby creating new micro markets.