Karnataka budget: State to induct 4,000 e-buses with World Bank aid at Rs 2,000 crore

• Karnataka to induct 4,000 electric buses with World Bank support
• Nine new railway routes planned, with shared costs with Centre
• Rs 1,593 crore released for seven domestic airport developments

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Karnataka will implement Karnataka Electric Bus Programme (KEBP) with financial assistance from the World Bank, at an estimated cost of Rs 2,000 crore, CM Siddaramaiah announced in his budget speech.

Under the programme, 32 BMTC depots and 62 depots of other State Road Transport Corporations will be upgraded, and 4,000 electric buses will be inducted to strengthen public transport services across the state.

The CM also highlighted ongoing efforts to improve conventional bus services. 2,000 diesel buses procured through direct purchase in 2025-26 have already been deployed, bringing the total number of buses provided to the corporations over the last three years to 6,596. An additional 1,000 diesel buses will be provided in 2026-27.

Road Safety and Sustainable Transport

To enhance road safety, a modern software system with a dashboard will be developed at a cost of Rs 5 crore, in collaboration with IIT Madras and NIC, to monitor and manage accident-prone zones, including in Bengaluru. The government will also invest Rs 10 crore in a rooftop solar project, installing solar systems at 25 Regional Transport Offices, driving tracks, and automated testing stations, promoting sustainable energy use across the transport sector.

Airports and Aviation Initiatives

The state has released Rs 1,593 crore so far for the development of seven domestic airports, with Rs 200 crore earmarked for the current year. Plans include setting up a flight training school and aircraft manufacturing or assembly activities under a PPP model at Vijayapura and Shivamogga airports. An aerospace park is planned adjacent to the Mysuru airport under KIADB to drive growth in the aerospace sector.

Railways and Suburban Transport

Nine new railway routes are planned under the 2026-27 budget, including Ginigera-Raichur, Tumakuru-Rayadurg, Chickamagalur-Belur, Kudchi-Bagalkot, Gadag-Wadi, Tumakuru-Davanagere, Belur-Hassan, Shimoga-Shikaripura-Ranibennur, and Dharwad–Kittur–Belagavi. “For the Ginigera–Raichur and Tumkur–Rayadurg routes, costs will be shared equally with the Central Government. For the remaining seven routes, 50 percent of construction costs will be borne by Karnataka, while land acquisition costs will be fully funded by the state”, the CM said.

So far, Rs 2,950 crore has been spent on land acquisition and Rs 2,682 crore on construction, with Rs 600 crore allocated for 2026–27. Land acquisition for Corridor-2 (Benniganahalli-Chikkabanavara) of the Bengaluru suburban railway project has been completed, while work for Corridor-4 (Heelalige-Rajanukunte) is ongoing. The government targets completion of both corridors by December 2030, with Rs 500 crore allocated this year.

The Byappanahalli-Hosur and Yeshwantpur-Channasandra doubling project, costing Rs 812 crore, has already opened 14 km of track to public service. For 2026-27, Rs 100 crore has been set aside for continued work. The state will also formulate a Comprehensive Multimodal Logistics Policy to develop ports and cargo transport zones.