Bengaluru's Rs 27,000 Crore Peripheral Ring Road Tender Receives Zero Bids In Third Consecutive Attempt

V Bhagya Subhashini

Jul 11, 2024, 06:05 PM | Updated 06:05 PM IST

With no successful bids, BDA is now considering alternative funding strategies. (Facebook)
With no successful bids, BDA is now considering alternative funding strategies. (Facebook)

The Bangalore Development Authority (BDA) has encountered another setback as the third tender for the proposed 73-kilometre Peripheral Ring Road (PRR) failed to attract any qualified bids.

Floated in January at a project cost of Rs 27,000 crore, this is the third unsuccessful attempt to secure a bidder, following two previous tenders last year.

The PRR, designed to encircle the city's peripheries, aims to alleviate traffic congestion and improve connectivity in the region. It will traverse through 10 major junctions and over 100 minor intersections, strategically placing 16 flyovers at key locations such as Hesarghatta Road, Old Madras Road, Whitefield Road, Channasandra Road, and Hosur Road, among others.

First proposed in 2006, the project was planned to be executed on a design, build, finance, operate, and transfer (DBFOT) basis.

BDA engineer-member H R Shantarajanna stated, “In the third tender, a Kenya-based company participated, but they did not qualify in the technical bidding,” reports Times Of India.

The firm had experience with a Rs 6,000 crore project, falling short of the required Rs 12,000 crore experience. Additionally, rising land acquisition costs have tripled, contributing to significant delays.

Initially estimated at Rs 14,000 crore, including Rs 8,000 crore for land acquisition and Rs 6,000 crore for development, the project's cost was revised to Rs 27,000 crore, factoring in Rs 21,000 crore for land acquisition due to demands for compensation per the 2013 Land Acquisition Act.

The bidder is expected to arrange the entire capital for the project and recover the investment by collecting tolls for 50 years, along with advertisement rights along the corridor, as per BDA.

With no successful bids, BDA is now considering alternative funding strategies.

In a recent meeting, BDA discussed raising a Rs 15,000 crore loan and seeking additional government support or potentially handing the project over to the National Highways Authority of India (NHAI). In 2016, NHAI had proposed to build a 60-metre wide PRR, but BDA did not accept the offer.


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.

Designs made public by the BDA showcase a 100-m-wide greenfield expressway, featuring green spaces, utilities, underground cables, footpaths, cycle tracks, and drains.

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.

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.

As BDA deliberates its next steps, the fate of the PRR project hangs in the balance, with critical decisions needed to move forward and address the city's growing traffic congestion.

V Bhagya Subhashini is a staff writer at Swarajya. She tracks infrastructure developments.

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