The Karnataka cabinet pitchforked the 15-year-old Peripheral Ring Road plan on to the list of priority infrastructure projects by approving tender documents for the Rs 21,000-crore project.
The decision was taken after securing the Supreme Court’s green signal last year for land acquisition for the project that seeks to provide connectivity between Tumakuru Road and Hosur Road.
The project planned in 2006 was delayed due to land acquisition and funding problems. The cost of the project has jumped seven times from Rs 3,500 crore when it was conceived. According to officials of Bangalore Development Authority, about 65% of the project cost is towards acquisition of 2,500 acres of land.
The 73km eight-lane road, which is 100 metres wide, will be built under the public-private partnership model wherein the entire project cost will be funded by the concessionaire and the latter would be allowed to collect toll for 50 years.
The BDA will soon float global tenders inviting bidders to implement the project,” said law and parliamentary affairs minister JC Madhuswamy. “The project was delayed mainly because of a legal battle over compensation for land owners. Now the Supreme Court has asked the government to pay compensation as per the old Act,” he added.
“After a lot of deliberation and consideration of huge funding required for the project, we’ve decided to extend the concession period to 50 years from the 30 years planned earlier,” an official said.