BENGALURU: The Finance Department (FD) had flagged significant financial, contractual and mobility-planning concerns over the upcoming 2.2km Hebbal short tunnel from Esteem Mall to Veterinary College, recommending that the proposal be deferred and a fresh plan submitted based on an Integrated Mobility Plan.
According to the document made available on a public platform recently, the department had raised several concerns after examining the revised Draft Cabinet Note (DCN) in 2025. But the cabinet went ahead without taking anyone’s concerns into account, and issued a government order on December 8, 2025, making the Bangalore Development Authority (BDA) the executing agency.
The department said the proposal attempted to address its earlier concerns, but raised questions over the tunnel’s integration with the proposed North-South Tunnel, the financial burden on BDA and the absence of an independent assessment of mobility alternatives.
One major concern related to changes to the ongoing B-SMILE tender for the North-South Tunnel. The department stated that an addendum to the existing tender would reconfigure or delete key ramps at Mehkri Circle to accommodate the short tunnel. It warned that altering the scope of a tender after it has been issued could expose the project to legal challenges, compensation claims and reduced participation from international bidders whose original bids were based on a different project configuration.
It highlighted that the changes had been justified through a procedural addendum without a comprehensive reassessment of the North-South Tunnel’s revised utility and financial model.
It also questioned the decision to fund the Rs 2,215 crore project entirely through BDA’s internal resources. The proposal reportedly relies on projected revenue of Rs 10,000 crore by March 2026 from asset monetisation, including e-auctions and deposits for the Dr K Shivaram Karanth Layout. The department had cautioned that such revenue could be affected by market fluctuations and legal or regulatory delays.
Diverting more than 20% of the projected one-time revenue towards the tunnel could constrain the BDA’s core responsibilities, including layout development and infrastructure such as water supply, sewerage and parks, it stated.
On mobility planning, the department noted the absence of a comprehensive feasibility report or an independent detailed project report from reputed experts. It also questioned the reliance on a DPR prepared by B-SMILE, which is implementing the North-South Tunnel.
The proposal primarily addresses private vehicle movement and does not demonstrate integration with Metro Phase 2B (Airport Line), suburban rail or other high-capacity public transport systems, it said.