The Union home ministry has acceded to the Karnataka government's demand to assist it in upgrading its police machinery and logistics.
The ministry has agreed in principle to immediately give aid to the state under the security-related expenditure scheme so that it can upgrade its police force and set up an Anti-Terrorist Squad exclusively for Bangalore, official sources said.
Three people from Bangalore -- Kafeel Ahmed, Sabeel Ahmed and Mohammed Haneef -- were arrested in connection with a terror plot.
Kafeel was the man who tried to drive a burning jeep laden with crude bombs into Glasgow airport on July 1.
The home ministry, during a meeting with state government officials last week, asked them to send a preliminary proposal for release of interim funds.
This would be followed by a detailed proposal including all plans to upgrade the state police force, the sources said.
The previous government led by N Dharam Singh had submitted a proposal to the Centre seeking Rs 32 crore to counter Maoist rebels, especially in the central region which has been hit by Naxalite violence.
The same proposal was carried forward by the current government led by Chief Minister H D Kumaraswamy but the Centre turned it down, saying there was no need for special funds to be given to the state as it could manage with its own resources, the sources said.
Sources in the Karnataka government said this happened around the time of the attack on the prestigious Indian Institute of Science in Bangalore on December 28, 2005.
Central security agencies have been expressing concern over security arrangements in Bangalore, which is home to many multinational companies and is considered the country's IT capital.
Besides the terror network that has been spreading across the state, Karnataka faces the menace of Maoist rebels, especially in its central part where several iron ore companies are based in Bellary district.