The Karnataka State Cabinet has approved a proposal to secure long-term loans to fund the ambitious Bengaluru Business Corridor project, previously known as the Peripheral Ring Road (PRR). This decision comes after two international tenders failed to attract bidders, prompting the state government to take charge of the project.
Addressing the media after the cabinet meeting, State Law and Parliamentary Affairs Minister H K Patil confirmed that the loans will cover 75 percent of the total project cost, according to The Hindu. Although the exact loan amount and total project cost were not disclosed, the state government will guarantee the loans from selected financial institutions.
The institutions identified for funding include REC Ltd., Power Finance Corporation, and Housing and Urban Development Corporation (HUDCO). In addition, state-owned enterprises with surplus resources will contribute capital. The repayment of loan interest will be flexible, with options ranging from allocations in the state budget to payments by the Bengaluru Development Authority (BDA).
For landowners affected by the project, compensation will be provided in accordance with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act of 2013. However, the cabinet’s compensation package includes alternatives such as Transferable Development Rights (TDR) for those opting for it voluntarily.
The BDA has earmarked 1,950 acres for the project, and land acquisition costs are estimated to exceed ₹20,000 crore. Notably, the cabinet decided that the Bengaluru Development Minister will not serve as the Chairman of the newly formed Special Purpose Vehicle (SPV), Bengaluru Business Corridor Ltd., though a new chairman has yet to be appointed.
Sources By Agencies
