PM Narendra Modi, during the inauguration of Kartavya Bhavan-3 on Wednesday, August 6, highlighted that the Central Government has been spending around Rs 1,500 crore annually on rent for accommodating various ministries in old buildings across New Delhi. Structures such as Shastri Bhawan, Krishi Bhawan, Nirman Bhawan, and Udyog Bhawan have long served as key administrative hubs but rely on expensive rented spaces, contributing significantly to recurring costs.
The newly inaugurated Kartavya Bhavan‑3 is part of the broader Central Vista redevelopment project, aimed at streamlining government operations and reducing such expenditure. Built with modern infrastructure and sustainable design, the building will house multiple ministries under one roof, including Home, External Affairs, MSME, and Petroleum. This consolidation is expected to enhance efficiency, security, and inter-ministerial coordination while saving taxpayers substantial amounts in the long run.
While PM Modi’s Rs 1,500 crore claim underscores the project’s financial rationale, there is no centralised public data validating the exact annual rental costs. Earlier government estimates pegged the savings at around Rs 1,000 crore per year, indicating either updated figures or rising lease costs. Regardless, the Kartavya Bhavans reflect a significant administrative overhaul, geared toward long-term fiscal prudence and better infrastructure for governance.
