Karnataka Govt Approves ₹21,091cr Peripheral Ring Road Project In Bengaluru, Concessionaire To Be Granted 50 Year 'Build-Operate-Transfer' Contract

The state cabinet meeting, chaired by Chief Minister Basavaraj Bommai in Vidhana Soudha on Wednesday (Feb 9), gave its go-ahead for the Peripheral Ring Road 9PRR) project for Bengaluru. The cabinet also provided administrative approval for inviting global tenders for the 71 km project.

With the cabinet nod secured, Peripheral Ring Road, which is envisaged as a eight-lane bypass that will link Tumakuru Road and Hosur Road, is set to take off. The project has been languishing on the drawing board for years due to land acquisition and costs escalation issues.

The final legal hurdle for the project was cleared in Nov 2021 after the Supreme Court directed the Karnataka government and the Bangalore Development Authority to acquire the land for the formation of Peripheral Ring Road and proceed to implement the project.

The SC permitted the project to go ahead in response to an affidavit filed by the Additional Chief Secretary, Government of Karnataka, Urban Development Department, Bengaluru.

In the affidavit, the state government argued that given the massive geographical expansion of the city to the current spread of 2196 sq km and explosive growth of vehicular ownership (2019 estimate - over 80 lakhs), Bengaluru needed the Peripheral Ring Road (PRR).

Bengaluru has been attempting to complete several large ring road projects to improve its city-region connectivity and alleviate traffic congestion. A Satellite Town Ring Road (STRR) is currently under construction.

About the Peripheral Ring Road (PRR)

The Peripheral Ring Road (PRR) is planned as a 73.50-km stretch with a 100 meter-wide road. On completion, it will connect Tumakuru and Hosur roads, via Hessaraghatta Road, Doddaballapur Road, Ballari Road, Hennur Road, Old Madras Road, Hoskote Road, and Sarjapur Road. Along with NICE Road, which links Tumakuru Road and Hosur Road via the city’s northwestern, western and southwestern areas, Bengaluru will have a 116-km-long bypass on its periphery.

The project will be developed on a public-private partnership-design, build, finance, operate and transfer model (PPP-DBFOT). The state cabinet also decided that the winning concessionaire will be granted the contract to construct and maintain the proposed ring road for a lease period of 50 years after which it will transfer it to the government.

Briefing reporters after the Cabinet meeting, Law and Parliamentary Affairs Minister J.C. Madhuswamy said that the PRR project will be executed by inviting tenders on PPP model on a 50-year lease for collection of the toll to recover the cost and then hand over the project to the State Government.

Briefing reporters after the Cabinet meeting, Law and Parliamentary Affairs Minister J.C. Madhuswamy said that the PRR project will be executed by inviting tenders on PPP model on a 50-year lease for collection of the toll to recover the cost and then hand over the project to the State Government.

The Special Purpose Vehicle (SPV) has been registered as a company in the name of Bengaluru PRR Development Corporation Ltd for undertaking the project funding, execution, and operations.

The winning concessionaire would be required to pay upfront part of the land-acquisition cost, which is estimated to be over ₹15,000 crores, he added. The total land required for the project will be a little over 2500 acres, which involves 1,810 acres that were originally notified.

The project is likely to be tendered in three packages - Tumakuru Road to Ballari Road (the road that connects Kempegowda International Airport); Tumakuru Road to Old Madras Road; and Old Madras Road to Hosur Road.

Massive Cost Escalation

When originally conceptualised 15 years ago with the aim of decongesting Bengaluru and easing traffic, the project was estimated to be Rs 3,000 crore. But due to design, rapid urbanisation, and land acquisition challenges, the project could never take off despite repeated attempts.

The project is now estimated to cost Rs 21,091 crore.

When the peripheral ring was first proposed in 2007, BDA (Bengaluru development Authority) had notified 1,810 acres of land but subsequent realignment and design resulted in land requirements going up by another 750 acres.

The design reconfiguration done to integrate the proposed PRR with NICE Road also resulted in increasing the length from 65 km to 73.5 km.

Project Amenities

The Hindu quoted BDA chairman S.R. Vishwanath as saying that land will be provided on the median of the PRR alignment to facilitate future metro networks. He added that helipads will be built for air-ambulance services at six identified locations as well as charging points for electric vehicles at strategic points. To beautify the stretch, boulevards will be built on either side of the road. To provide an impetus for tech-hubs to be formed near PRR, the BDA will allow the construction of high-rise buildings.