Karnataka to borrow Rs 33,000 cr from Centre to tide over Covid crisis

News Network
September 15, 2020

Bengaluru, Sep 15: Close on the heels of the Union government allowing the states to borrow up to five per cent of the state's GDP, the cabinet on Tuesday approved the decision to amend the Karnataka Fiscal Responsibility Act in order to borrow an additional Rs 33,000 crore in this fiscal year.

The proposed amendment will enable the Karnataka government to increase the borrowing limit from the present three per cent to five per cent of the GSDP (gross state domestic product), which can go up to Rs 36,000 crore. Recently, the Union Finance Minister had allowed this as a one-time measure for all the states in the country. Karnataka is one of the early states to take this route to mop-up revenues to meet its needs.

 Speaking to reporters after the cabinet meeting here, Karnataka Law and Parliamentary affairs minister, J. C. Madhuswamy said that the state will also sell "B-Kharab" land (wasteland) existing within the periphery of 18 kms in and around Bengaluru at four times the present guidance value.

He added that everyone knows the truth behind why the state government had to opt for this route. "Due to the pandemic, we are helpless, we need money to kickstart various projects. Therefore, the state cabinet has approved to amend the Karnataka Fiscal Responsibility Act, which will allow us to borrow up to Rs 36,000 crore but at present we have decided to use it to the tune of Rs 33,000 crore," he explained.

According to him, all these years, whenever such borrowings were undertaken, it was used only for capital investment purposes, but for the first time the state has decided to utilise it for expenditure purposes also.

Generally, in government parlance, capital investment is considered to be an investment in development projects or to introduce welfare programmes, while expenditure is deemed as payment of salary and other day-to-day expenses incurred by the government.

Across the state, sporadic protests in the recent past by doctors, teachers, guest lecturers and others over the delay in their salaries was also another reason why the Karnataka government has opted for this route, a senior bureaucrat told IANS.

The minister added that the state government had not forgone its demand to the tune of Rs 11,000 crore GST share from the Union government. "We will relentlessly pursue to recover this share from the Union government. We have not forgone our claim on this. Like all other states, we will also continue to demand from the Union government to release our share," he added.

Responding to a question about the government's decision to auction the Kharab land in Bengaluru, the Law Minister added that whenever the state government allots land, sometimes, that land will also contain Kharab land, for which the government would not have recovered the cost.

"But now within Bengaluru, the land prices have shot up to an unprecedented level that even this Kharab land fetches a good value for realtors. Therefore, the state government will recover the cost from them to legalise it in their favour. Most of the Kharab land is used to build housing or commercial complexes. Hence, the state is now planning to charge four times the present guidance value in such cases," he explained.

According to the Minister, Karnataka will also renew the mining lease that was awarded to the National Minerals Development Corporation in Bellary, where they have been operating for the last several years. "With the renewal of mining lease to the NMDC, the state is expected to mop-up to the tune of Rs 650 crore annually," he said.

Answering to another question, Madhuswami asserted that there was no proposal before the state government to divide Bengaluru city into three or four municipalities, but there was a proposal of dividing Bengaluru into four zones. "Bengaluru will be divided into four zones. To effect this change, the state government is planning to introduce a new Act exclusively in the forthcoming Legislature session," he said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
January 31,2026

Roy.jpg

Bengaluru: The shooting incident involving CJ Roy, founder of the Confident Group, has once again put the spotlight on a businessman whose life has swung between flamboyant global success and persistent controversy at home.

Though Roy’s business interests extended across continents, his roots lay firmly in Karnataka. An alumnus of Christ School in Bengaluru, he later moved to Tumakuru to pursue an engineering degree. Those familiar with his early years describe him as intensely ambitious, beginning his career as a salesman at a small electronics firm dealing in computers.

Roy’s entry into large-scale real estate came through the Crystal Group, where he worked closely with Latha Namboothiri and rose from manager to director. However, the launch of the Confident Group in 2005 was clouded by industry speculation. Insiders speak of a fallout involving alleged “benami” properties and claims of deception that ultimately led to his independent venture—an episode Roy spent years trying to distance himself from, according to associates.

A tale of two cities

Roy’s professional trajectory diverged sharply across geographies.

In Dubai, he built a reputation as a bold and efficient developer, completing massive luxury residential projects in record time—some reportedly within 11 months. His rapid project delivery and lavish lifestyle in the Emirates earned him admiration and visibility in the real estate sector.

In Bengaluru, however, his image remained far more fractured. Sources say Roy stayed away from the city for several years amid disputes over unpaid dues to vendors and suppliers. Several projects were allegedly stalled, with accusations of unfulfilled commitments to cement and steel suppliers continuing to follow him.

Roy’s return to Bengaluru’s business and social circles began around 2018, marked by a conscious attempt at rebranding. His appointment as Honorary Consul of the Slovak Republic added diplomatic legitimacy, which he complemented with visible CSR initiatives, including ambulance donations and high-profile charity events.

Heavy police presence in Langford Town

Following the incident, police personnel from the Central division were deployed outside the Confident Group building in Langford Town, which also houses the Slovak Honorary Consulate in Bengaluru.

The otherwise busy premises near Hosur Road wore a deserted look on Friday, reflecting the shock and uncertainty that followed the tragedy.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
coastaldigest.com news network
February 5,2026

protestkerala.jpg

Mangaluru: The KSRTC Mangaluru division has rolled back the fare hike on buses operating on the Mangaluru–Kasaragod route following the suspension of toll collection at the Arikkady toll plaza near Kumbala in Kasaragod district.

The fare revision had been implemented after the National Highways Authority of India (NHAI) began toll collection at the Arikkady plaza on NH-66. As a result, fares for ordinary and Rajahamsa services were increased by ₹7 and ₹10, respectively, raising the bus fare from Mangaluru to Kasaragod from ₹81 to ₹88.

Senior Divisional Controller of KSRTC’s Mangaluru division, Rajesh Shetty, said the fares were reduced after toll collection at the Arikkady plaza was stopped. “The tollgate began operations on January 13, and the toll amount was deducted from the FASTag accounts of KSRTC buses operating on the route. Following an order from the central government to suspend toll collection, KSRTC has also withdrawn the additional fare with immediate effect,” he said.

At present, vehicles travelling on the Mangaluru–Kasaragod route pay toll only at the Talapady toll plaza. The toll for light motor vehicles (LMVs) at Talapady is ₹80 for a same-day return, while heavy vehicles, including buses, are charged ₹250. At Arikkady, the toll rates were ₹130 for LMVs (same-day return) and ₹450 for buses.

Protests against Arikkady toll plaza

The Arikkady toll plaza witnessed widespread protests from January 12, the day toll collection commenced. On the second day, an action committee led by Manjeshwar MLA A K M Ashraf launched an indefinite protest at the site. Except for the BJP, leaders and workers of most major political parties participated in the agitation.

On the night of January 14, a large number of protesters gathered at the plaza and vandalised property, following which authorities temporarily suspended toll operations. The BJP later also expressed opposition to the toll plaza and criticised NHAI’s decision. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 3,2026

manjeshwar.jpg

Kasaragod: An 18-year-old girl was stabbed to death at Thuminad in Manjeshwar panchayat on Monday, allegedly by her father following a domestic dispute. 

The victim has been identified as K U Mariyamath Jumaila. Her father, Umar Farooq, has been taken into police custody, Manjeshwar Station House Officer Inspector Ajith Kumar P said.

According to the police, Umar Farooq had been working in a West Asian country and returned home about three months ago. 

Family tensions reportedly escalated after his wife, Thahira (41), decided to seek a divorce and asked him to leave her life. Kasaragod district panchayat member Harshad Vorkady alleged that Umer was addicted to marijuana and frequently caused disturbances at home.

On Monday, Thahira asked Umar to come to her sister’s house in Thuminad to discuss the dispute. Jumaila accompanied her mother. 

Manjeshwar panchayat member Illiyas Thuminad said Umar arrived along with his brother, following which Thahira handed over gold ornaments and property documents to him and asked him to sever ties with her.

However, the police said a property dispute had been ongoing between Umar Farooq and his sister-in-law’s husband. During a heated argument, Umar allegedly attempted to attack the man with a sharp weapon. When Jumaila intervened to stop the assault, she was stabbed in the neck.

The teenager collapsed after bleeding profusely and was rushed to a private hospital in Mangaluru, where doctors declared her dead. Her body was later shifted to Mangalpady Taluk Hospital for post-mortem examination.

Jumaila was a former student of Sirajul Huda English Medium Higher Secondary School, Manjeshwar. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.