Bengaluru: HUDCO sanctions Rs 27,000 crore loan for Peripheral road project
HUDCO has approved a Rs 27,000 crore loan for Bengaluru's Peripheral Road Project, led by the BDA. The 73-km, 100-meter-wide corridor aims to ease traffic and promote commercial growth. Land acquisition and construction will begin soon, with completion targeted in three years.
FollowThe Housing and Urban Development Corporation (HUDCO) has agreed to provide a loan of Rs 27,000 crore to the Bangalore Development Authority (BDA) for the long-awaited 'Bangalore Business Corridor' (BBC) project. According to BDA sources, the project has stalled for the last 16 years and is now set to take off within the next two months.
The two agencies are expected to sign the agreement soon, enabling the acquisition of 2,560 acres of land for the project. The compensation for farmers whose land will be acquired will be determined per the BDA Act and the Land Acquisition Compensation Act.
HUDCO’s financial assistance comes with a state government guarantee. Of the total loan amount, Rs 21,000 crore is allocated for land acquisition, while Rs 6,000 crore is earmarked for road construction. A senior BDA official revealed that the BBC project involves constructing a 100-meter-wide corridor, and the land acquisition process has already been initiated.
To make the project financially viable, it has been proposed to utilize the land on both sides of the corridor for commercial purposes. A six-lane road will occupy 50 meters of the corridor's width, while the remaining land will be reserved for business and commercial activities. Officials believe that relying solely on toll collections may not be sufficient to repay the loan, making commercial development essential for revenue generation.
The BDA aims to complete the BBC project within three years. The state government has assured it will bear the loan interest for four years. If the loan is not repaid within this timeframe, the BDA will have to cover the principal amount along with the accumulated interest. To ensure repayment, the authority plans to create new settlements and allocate land for commercial purposes.
The BBC project, designed to reduce Bengaluru's notorious traffic congestion, will connect Tumkur Road and Hosur Road. The 100-meter-wide, 73-kilometer-long outer ring road will pass through 77 villages, linking major roads such as Hesaraghatta Road, Doddaballapura Road, Bellary Road, Hennur Road, Old Madras Road, Whitefield, Channasandra, and Sarjapur Road. The corridor will start at the NICE Junction near Madanayakahalli on Tumkur Road and end at Hosur Road.
With HUDCO’s financial backing and state support, the BBC project is finally moving forward, promising significant relief for Bengaluru's traffic woes and boosting economic activity through planned commercial development.
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