BENGALURU: The state government is considering selling all government-owned land along the Peripheral Ring Road (PRR) to private firms to raise funds for reviving the 16-year-old pending project.
It involves developing a 74-km eight-lane access-controlled road connecting Tumakuru and Hosur roads via Hessaraghatta Road, Doddaballapur Road, Ballari Road, Hennur Road, Old Madras Road, Hoskote Road and Sarjapur Road.
To make the project a reality, the government has started the process of surveying land it owns around the PRR and in the city that can be sold.
The Bangalore Development Authority (BDA) had drawn up plans for the PRR in 2007, and the project was approved by the state government in February 2022 for the development of the public-private partnership design, build, finance, operate, and transfer model (PPP-DBFOT). However, that did not materialize, and the last tender was canceled in September 2022.
“The status of the project remains the same even after 16 years. The government is still struggling to acquire land under the Right to Fair Compensation Act. The government needs Rs 15,000 crore to acquire 2,680 acres of land. Since NICE Road has been constructed on half the loop, the Metro line can also not be constructed. Now to build the road after acquiring lands, money is needed and the government is exploring all options including selling government land to private players,” a source privy to the developments about the project said.
He added that all legal propositions are being discussed. “Nobody is keen to invest or set up anything around till the PRR is completed. So the government is thinking of developing or at least earmarking land to be developed as layouts or townships around the PRR. It is being discussed whether these land parcels will be developed and sold to private firms or sold as undeveloped lands is also being discussed,” he said.
BDA officials said the Japan International Cooperation Agency (JICA) has agreed to fund Rs 6,000 crore for the project. However, this cannot be utilized for land acquisition. In 2016, the central government was approached for funding and partnership, but that too did not materialize.
The BDA official said the government is thinking of calling for tenders again next month. A meeting with government officials will be held once the final solution for funding the project is ascertained.
The official added that PRR is much needed as the existing NICE Road is also chocked, and so is the Outer Ring Road. However funding for land acquisition has been a major problem for all successive governments since 2007, leaving the sale of lands as the only option.