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Tunnel road a ‘real estate project in disguise’, say citizen groups

CH NEWS
BENGALURU

Citizen groups opposing Bengaluru’s proposed tunnel road have termed the project a “real estate project in disguise” and urged city MLAs and MPs to reject it. Bengaluru Praja Vedike (BPV), which is campaigning against the project, has described it as “vanity infrastructure” that could repeat the shortcomings of earlier flyover projects.

The group has alleged that valuable land and commercial development rights are being offered to the private concessionaire as ancillary revenue. It estimates that real estate-related revenue could exceed Rs 30,000 crore over the concession period.

The draft concession agreement proposes intermodal hubs at Hebbal, Palace Grounds/Mehkri Circle, Race Course, Lalbagh and Silk Board. About 6.13 acres of government land would be handed over for the facilities, which are proposed to include parking and retail spaces.

Bengaluru Smart Infrastructure Ltd (B-SMILE) estimates the hubs could generate Rs 250-300 crore annually. The concession period is 30 years, extendable to 40 years.

Citizen groups have also raised concerns over statutory approvals, environmental impact, groundwater disruption and the exclusion of two-wheelers and autorickshaws.

The project is facing three PILs in the Karnataka High Court. The court has directed that any contract entered into will remain subject to the outcome of the petitions. The next hearing is scheduled for August 20.

B-SMILE Technical Director B.S. Parhlad said ancillary revenue was an incentive to attract firms and was not illegal.

KEY PROJECT DETAILS

FeatureDetails
Concession period                30 years, extendable to 40
Intermodal hubs                5 locations
Land involved                6.13 acres
Estimated annual ancillary revenue                Rs 250-300 crore
Estimated real estate revenue                Over Rs 30,000 crore, citizens claim
VGF loan                Rs 19,000 crore

CITIZENS’ CONCERNS

Citizen groups have questioned the project’s statutory compliance, environmental impact and economic viability. They allege the tunnel could benefit mainly car users while excluding two-wheelers and autorickshaws. They have also raised concerns over groundwater disruption and construction near Lalbagh’s geological formations. The groups claim commercial development rights at prime locations could generate substantial revenue for the concessionaire, while the government bears significant project costs through viability-gap funding.

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