The Bengaluru Suburban Railway Project (BSRP) has suffered a major setback as infrastructure giant Larsen & Toubro (L&T) terminated its contract for Corridors 2 and 4, citing delays in land acquisition. The move has sparked sharp political criticism from BJP leaders, who accused the Congress-led Karnataka government of failing to facilitate timely land handover.
L&T, In a letter to the Managing Director of K-RIDE (Rail Infrastructure Development Company – Karnataka), stated that despite receiving the Letter of Acceptance in August 2022, only 8.28% of encumbrance-free land had been handed over in the past two years. The firm cited project delays, cost overruns, and idle manpower and equipment as reasons for its withdrawal.
The company has also approached the Commercial Court in Bengaluru, which has granted an interim injunction preventing K-RIDE from invoking L&T’s bank guarantees. Additionally, L&T is seeking compensation of approximately ₹500 crore for Corridor 2 and ₹150 crore for Corridor 4.
BJP MPs PC Mohan and Tejasvi Surya lashed out at the state government. Mohan called the exit a “betrayal of Bengalureans,” while Surya criticised the bureaucratic inefficiency plaguing the project. “This reflects the government’s lack of urgency and planning,” Surya posted on social media. The ₹15,767 crore BSRP, sanctioned in 2020 with a six-year timeline, was expected to transform urban commuting. However, L&T’s departure raises concerns about further delays and financial strain. With land acquisition issues unresolved, the future of Bengaluru’s much-anticipated suburban rail connectivity now hangs in the balance.
