Karnataka CM Siddaramaiah meets PM Modi, seeks clearances for two projects

Karnataka Chief Minister Siddaramaiah on Friday met Prime Minister Narendra Modi, requesting rectification in short term farm loan limit, Rs 10,000 cr in financial support and urgent clearances for the Mekedatu Balancing Reservoir and Kalasa Bandhuri projects.

In the meeting in Parliament complex, Siddarmaiah pressed for several key interventions focusing on critical areas, including agriculture, water resources and urban infrastructure.

Deputy Chief Minister and Irrigation Minister D K Shivakumar, Energy Minister K J George and Urban Development Minister Byrathi Suresh accompanied the CM for the meeting.

The chief minister highlighted that NABARD has drastically cut the Short Term Agricultural Credit Limit for Karnataka from Rs 5,600 crore in 2023-24 to just Rs 2,340 crore in 2024-25, a 58 per cent reduction that could severely impact farmers' access to soft loans.

"I request you to look into this and direct the Finance Ministry to rectify this situation so that farmers in Karnataka continue to receive soft agricultural loans," Siddarmaiah said in a representation made to the PM.

He requested Rs 5,300 crore for the Upper Bhadra Project, which promises to irrigate central Karnataka's drought-prone farmlands. The project has been pending since the 2023-24 Union Budget.

He also pushed for clearances of two critical water projects - the Mekedatu Balancing Reservoir on the Kaveri river and the Kalasa Bandhuri project on the Mahadayi river -- both awaiting approvals from the Jal Shakti and Environment Ministries.

Highlighting Bengaluru's status as a tech hub and top GDP contributor, the state requested special assistance for urban and public transportation.

Additionally, Karnataka sought Rs 10,000 cr to develop infrastructure in 13 emerging city corporations.

On fiscal allocation, the CM complained of receiving an unfavourable deal from the 15th Finance Commission, which reduced its tax share by 1 per cent.

Siddaramaiah urged the government to provide compensation grants and ensure future finance commissions do not penalise states with significant tax contributions.

The Karnataka chief minister also met Congress leader Priyanka Gandhi Vadra and congratulated her on being elected as an MP from Wayanad.