Karnataka govt seeks Rs 27,000 crore from PSU to fund Bengaluru's Peripheral Ring Road project
By Vinaykumar Patil | First Published Nov 6, 2024, 5:04 PM ISTThe Karnataka government is seeking Rs 27,000 crore in loans from PSUs to fund the Bengaluru Peripheral Ring Road (PRR) project. The 73-km road, now named Bengaluru Business Corridor, aims to improve city connectivity and infrastructure. Land acquisition and tenders for construction are underway.
The Karnataka government is actively seeking loans from Public Sector Undertakings (PSUs) to fund the construction of the much-anticipated Bengaluru Peripheral Ring Road (PRR) project, which is nearing completion. The 73-kilometre stretch, now named the Bengaluru Business Corridor, is estimated to cost around Rs 27,000 crore, including expenses for both construction and land acquisition.
LK Atiq, Additional Chief Secretary (Finance) for the state government, confirmed that the government has approached key financial institutions, including the Housing and Urban Development Corporation (HUDCO), Rural Energy Corporation (REC), and Power Finance Corporation (PFC), to secure loans for the project. Atiq further noted, “We will opt for the loan option with the best interest rates.”
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Atiq, who also serves as the head of Bengaluru Business Corridor Limited, held a crucial meeting on Monday regarding the special purpose vehicle (SPV) created for the PRR project’s implementation. On Tuesday, Atiq shared an update on X, stating that tenders for the eight-lane road, service lines, and metro rail components are expected to be issued within the next six months.
Progress is being made on land acquisition as well. Atiq revealed that the finalization process to compensate landowners for the 2,400 acres required for the 73-km road has already begun. He added that discussions have been ongoing with the National Highways Authority of India (NHAI), Bengaluru Metro, and other relevant agencies regarding the project’s design and exchange.
Why Bengaluru residents are concerned by Peripheral Ring Road Project
The Bengaluru Peripheral Ring Road project, which was initially proposed in 2006, has faced several delays over the years, primarily due to disputes over land compensation. Additionally, a tender held in July 2022 saw no bidders, further pushing back the timeline.
Once completed, the Peripheral Ring Road is expected to improve connectivity around Bengaluru, reducing traffic congestion and enhancing the overall infrastructure of the city. The project is expected to play a crucial role in the city’s growth, aligning with its vision to become a major business hub.
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