Government of Karnataka approves 21,091 cr ring road project in Bangalore, concessionaire to be awarded 50-year build-operate-transfer contract

0

The state cabinet meeting, chaired by Chief Minister Basavaraj Bommai at Vidhana Soudha on Wednesday, February 9, gave the go-ahead for the Ring Road Project (9PRR) for Bengaluru. The cabinet also provided administrative approval to launch global tenders for the 71 km project.

With nod from cabinet obtained, Peripheral Ring Road, which is envisioned as an eight-lane bypass that will connect Tumakuru Road and Hosur Road, is poised to take off. The project has languished on the drawing board for years due to land acquisition issues and rising costs.

The final legal hurdle for the project was cleared in November 2021 after the Supreme Court ordered the Government of Karnataka and the Bangalore Development Authority to acquire the land for the formation of Peripheral Ring Road and proceed with the implementation of the project.

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

In the affidavit, the state government argued that given the city’s massive geographic expansion with a current extension of 2196 sq km and explosive growth in vehicle ownership (2019 estimate – over 80 lakhs ), Bengaluru needed the Ring Road Ring Road (PRR).

Bangalore has attempted several major 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 over a section of 73.50 km with a 100 meter wide road. When completed, it will connect Tumakuru in and Hosur roads, via Hessaraghatta Road, Doddaballapur Road, Ballari Road, Hennur Road, Old Madras Road, Hoskote Road and Sarjapur Road. With NICE Road, which connects Tumakuru Road and Hosur Road via the North West, West and South West areas of the city, Bangalore will have a 116 km long bypass on its outskirts.

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

Briefing journalists after the Cabinet meeting, the Minister for Law and Parliamentary Affairs, JC Madhuswamy, said the PRR project will be executed by tendering on PPP model on a 50-year lease for collection toll to recoup the cost and then turn the project over to the state government.

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

The winning concessionaire would be required to prepay part of the cost of acquiring the land, which is estimated to be over ₹15,000 crore, he added. The total land required for the project will be just over 2,500 acres, implying 1,810 acres initially notified.

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

Share.

About Author

Comments are closed.