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Bengaluru Tunnel Road Faces Backlash as Citizen Groups Allege Hidden Real Estate Windfall

Citizen groups opposing the Karnataka government’s proposed tunnel road project in Bengaluru have labelled the infrastructure plan a “real estate project in disguise.” The campaign group Bengaluru Praja Vedike (BPV) has written to all Members of Legislative Assembly (MLAs) and Members of Parliament (MPs) across the city, urging them to reject the proposal in favour of evidence-based planning.

What Happened

Ahead of the Karnataka legislature’s Monsoon Session starting on August 13, Bengaluru Praja Vedike reached out to elected representatives calling the tunnel road “vanity infrastructure that repeats flyover failures.” The group raised concerns over the draft concession agreement, alleging that prime public land and commercial development rights are being granted to private concessionaires without proper value accounting.

According to the draft agreement, concessionaires will be tasked with constructing intermodal transit hubs at five major vertical shaft junctions: Hebbal, Palace Grounds/Mehkri Circle, Race Course, Lalbagh, and Silk Board. The state government plans to hand over a total of 6.13 acres of land across these prime locations.

Key Highlights

  • Commercial Space Allocation: The intermodal hubs are planned as five-floor structures consisting of a platform level, services floor, parking floor, and two retail floors, permitted up to a Floor Space Index (FSI) of 5 for transit-oriented development.
  • Revenue Projections: Bengaluru Smart Infrastructure Ltd. (B-SMILE) estimates annual ancillary revenue from these hubs at ₹250 crore to ₹300 crore. However, citizen groups estimate the total real estate earnings could exceed ₹30,000 crore over the 30-to-40-year concession timeline.
  • Exclusion from Total Concession Value: Under the draft terms, ancillary revenues will not be factored into calculations when reviewing the concession period.
  • Public Funding: The state government has already secured a ₹19,000-crore loan to cover 40% Viability Gap Funding (VGF) for the Hebbal-Silk Board North-South corridor, with real estate incentives sitting over and above this funding.
  • Agency Response: B.S. Parhlad, Technical Director at B-SMILE, stated that ancillary revenue is a legal incentive designed to attract private firms, citing similar operational models used by the Port Authority of New York and New Jersey and the New York State Thruway Authority.

Why This Matters

Urban mobility experts and citizen forums argue that excluding commercial real estate income from the Total Concession Value (TCV) places an unnecessary financial burden on commuters and public funds. Independent urban mobility expert Satya Arikutharam noted that if ancillary revenues were incorporated into project cost models, the tunnel roads could potentially operate without tolls, warning that unaddressed commercial terms could lead to prolonged contractual controversies.

What to Watch Next

The issue is slated to surface during the Karnataka legislature’s Monsoon Session beginning August 13, where opposition leaders are expected to question the administration regarding the concession terms and financial viability of the North-South corridor.

Frequently Asked Questions

What are the primary objections raised by Bengaluru Praja Vedike?

The citizen group argues that the project replicates past flyover shortcomings and acts as an unmonitored commercial windfall, granting private developers prime central city land with an FSI of 5 that could yield substantial commercial earnings not offset against project tolling.

Where are the proposed intermodal hubs located?

The draft plans identify five vertical shaft junctions for the hubs: Hebbal, Palace Grounds/Mehkri Circle, Race Course, Lalbagh, and Silk Board, covering 6.13 acres of land.

How does B-SMILE justify the ancillary revenue model?

B-SMILE maintains that providing commercial development rights is a standard, lawful incentive mechanism to attract infrastructure developers, referencing international frameworks used in the United States by authorities in New York and New Jersey.

Source: Based on reporting from The Hindu.