Bengaluru's Peripheral Ring Road: BDA Proposes New Compensation Model To Attract Bidders For Rs 27,000-Crore Project

In a bid to revive the long-delayed Rs 27,000-crore Peripheral Ring Road (PRR) project, the Bangalore Development Authority (BDA) has proposed a new approach to incentivise land-losing farmers by sharing a substantial portion of the development area with them.

This innovative strategy aims to overcome the hurdles that have stalled the project since its proposal in 2007. Despite three rounds of tendering, the BDA has been unable to attract a successful bidder for the 73km circular road project.

A senior official revealed, “The new proposal was discussed and approved during the BDA Board meeting on 31 July. We will soon forward it to the government for consideration."

”The primary challenge lies in the acquisition cost of 2,560 acres of land, amounting to Rs 21,000 crore out of the total project budget of Rs 27,000 crore. This substantial cost has deterred potential bidders. If we can manage this component through alternative means, the construction cost would be reduced to Rs 6,000 crore, likely attracting more interest,” the official explained, reports The New Indian Express.

Innovative Land Compensation Strategy

The new plan involves constructing the road on only 50 metres of the proposed 100-metre width, with the remaining 50 metres developed and handed over to the land-losers.

This arrangement will exclude areas near toll plazas and buffer zones of seven lakes. Developed land includes essential infrastructure such as drainage, water supply, lighting, and signage, and the recipients are free to use it for commercial purposes.

Currently, BDA compensates landowners with 40 per cent of developed land (9,583 sq ft) for every acre acquired. This 60:40 model will be retained under the new proposal.

Alternative Financing Options

BDA had previously suggested three other options to the government: taking a loan from REC or Housing and Urban Development Corporation Limited (HUDCO), with the state government covering the interest.

BDA would build the road and collect tolls to repay the loan; handing over 30 per cent of the acquired land to the concessionaire for commercial use; and a public-private partnership model, which has not been successful, where the bidder bears the entire project cost and leases it for 50 years, collecting all toll revenue.

In all these options, BDA is prepared to offer Transfer of Development Right (TDR) certificates as compensation for landowners who prefer land elsewhere, along with a cash option for small plots (less than 20 guntas).

Bengaluru Peripheral Ring Road 

The project covers a length of 65.95 km between Hosur Road and Tumakuru Road, with an additional 3.4 km near Madanayakanahalli and 4.08 km near Hebbagodi to link existing roads seamlessly into the PRR network.

This ambitious project is set to feature 16 flyovers, 10 overpasses, and 12 underpasses, enhancing the city's transportation network. Additionally, the plan includes bridges over seven water bodies, including prominent ones like Chikkatogur Lake, Gunjur Lake, and Jarakabande Lake, further facilitating seamless connectivity.

To tackle traffic intricacies, the project incorporates six cloverleaf-type over bridges, providing a solution for efficient crisscrossing without congestion.

The main carriageway, boasting eight lanes, will be flanked by service roads on both sides, with a broad median reserved for potential future integration with the metro project.