Finance and Economy News

Karnataka’s ₹613 Crore Road Sweeping Machine Plan Sparks Controversy; BJP Flags ‘Massive Scandal’

A major debate has erupted in Karnataka after the state Cabinet approved a ₹613.25 crore plan to rent 46 mechanical road-sweeping machines for seven years. The decision, cleared on Thursday, has drawn sharp criticism from the BJP, social media users, and technical committees.

BJP leaders allege that the numbers “do not add up,” calling the project a ‘massive financial scandal’.

BJP Calls It an Overpriced, Suspicious Deal

Union Minister Shobha Karandlaje accused the Congress government of inflating costs and questioned who stands to gain.

She noted that:

  • A road-sweeping machine typically costs ₹50–80 lakh,

  • Which means 46 machines should cost roughly ₹37–38 crore,

  • Even with staff and maintenance, the total “should not exceed ₹100 crore”.

“Yet the government is spending ₹613 crores. This raises serious doubts about where the remaining ₹500 crores is going,” she said on X, demanding the plan be dropped and full transparency ensured.

Also Read: Tata Motors PV Shares Crash 6% After Weak Q2, JLR Guidance Cut

Public Questions Cost Logic: ‘Math Isn’t Mathing’

The controversy intensified after citizens took to social media.

One user wrote:
“Rent 46 sweeping machines at ₹1 crore per year for 7 years — how does that add up to ₹613 crores?”

Another pointed out that renting a machine for ₹2 crore per year makes no sense when the machines cost ₹60–70 lakh to buy.

Concerns were also raised about 26 existing machines lying unused, reportedly due to operational and payment issues.

What the Government Says: High Upfront Cost Is the Key Factor?

A Deccan Herald report noted that the Greater Bengaluru Authority (GBA) sought approval to rent the machines for seven years, with the entire expenditure to be borne by the five newly created municipal corporations in Bengaluru.

Law Minister HK Patil said the Cabinet opted for rental because purchasing would require heavy initial expenditure.

Initially, GBA had proposed:

  • 59 machines,

  • At a cost of ₹781 crore.

But the Urban Development Department reduced the number to 46, while slightly increasing the per-machine rental cost.

A technical committee led by KUIDFC MD R Selvamani reportedly suggested outright purchase instead of renting.

Consulting firms were brought in for further assessment:

BCG’s findings:

  • An outright purchase would cost around ₹3 crore per machine with attachments.

  • Suggested a hybrid model: 40% upfront + 60% performance-linked,

  • Noted that renting is ₹50 lakh more expensive per machine.

Despite this, the Cabinet chose the rental option.

Bengaluru’s Current Capacity Remains Low

The city currently has 26 sweeping machines, but reports say their output has been poor, prompting the demand for additional units.

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Pradeep Sangatramani

Pradeep Sangatramani, founder and CEO of NiftyTrader, is an IIM Calcutta alumnus with a background in engineering. Passionate about the stock market from early on, he spent years studying its dynamics and working in roles focused on market analysis, trading tools, and financial data. Realising the challenges traders face in accessing user-friendly tools, he built NiftyTrader to offer data-driven, easy-to-use solutions. Committed to transparency and education, Pradeep actively shares insights through articles and webinars, aiming to empower traders at all levels.

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