BENGALURU: The Bangalore Development Authority (BDA) last week came up with a new option to kickstart the much-delayed Rs 27,000-crore Peripheral Ring Road (PRR) project. The plan involves sharing a significant portion of the area to be developed for the project with the landlosing farmers.
The Authority is forced to think of radical approaches to get the project proposed in 2007 off the ground as there has been no successful bidder despite three rounds of tendering.
A senior official told TNIE, “The new proposal for this 73.03-km circular road was discussed during the BDA Board meeting on July 31. The Board approved it. We will send it shortly to the government for its consideration,” he added.
The crux of the issue is that the acquisition cost for 2,560 acres of land for the project works out to Rs 21,000 crore in the overall budget of Rs 27,000 crore. “It is this huge cost that is putting off any bidder. If this component can be managed through other means, then the construction cost would work out to only Rs 6,000 crore and will generate interest from concerns,” he said.
Elaborating on the present move, the official said that out of the 100-metre width road proposed for the project, the road would be built only for 50 metres. “The land developed for the remaining 50 metres will be handed over to land losers. This will not be possible near the toll plazas and the buffer zones of seven lakes near which the project passes.
But it can be done at all other places along the road,” he said. Developed land refers to the land readied with infrastructure like drainage, water supply, lighting and signages. The individual who is given the land is free to use it for commercial purposes, he added.
The present compensation package followed by BDA is 40% of developed land (9,583 sqft) for every acre obtained from a landowner. “This 60:40 model will be retained,” he said.
BDA had already proposed three other options to the government. One is to take a loan from REC or HUDCO with interest to be paid by the state government. BDA will itself build the road and collect the toll along the entire stretch. It could form some layouts and repay the loan.
Another option is to handover 30% of the land acquired to the concessionaire (the one who bags the contract) to be used for commercial purposes. The third option is the public private partnership model which has been attempted but has not worked out. This is to make the bidder bear the entire cost of the Rs 27,000-crore project and take it on lease for 50 years and collect all toll amount.
Another official said that in all the above options, BDA was ready to handover Transfer of Development Right (TDR) certificates instead of compensatary land to owners who want to use it to claim land elsewhere. Cash option is also offered in case of tiny plots of land (less than 20 guntas).
The project
The PRR Phase-I runs from Tumakuru Road (NH-48) and goes via Doddaballapur Road, Ballari Road, Old Madras Road, Whitefield Road and end of Hosur Road (NH-44).