Third tender cancelled: State turns to HUDCO, REC for Bangalore's PRR funding

These companies have already conveyed their interest in giving loans to meet the land acquisition cost, which stands at a whopping Rs 21,000 crore.
Deputy Chief Minister DK Shivakumar at a meeting with officials of various civic agencies on Thursday evening.
Deputy Chief Minister DK Shivakumar at a meeting with officials of various civic agencies on Thursday evening.Photo | Express

BENGALURU: With the third round of tendering for the Rs 27,000-crore Peripheral Ring Road (PRR) project of the Bangalore Development Authority (BDA) cancelled too, the state government is now considering implementing the project with the assistance of public sector finance companies -- Housing and Urban Development Corporation Ltd (HUDCO) or REC Ltd. This proposal was discussed during a meeting held by Deputy Chief Minister D K Shivakumar with officials of civic agencies on Thursday evening. He took stock of works undertaken in the past few months and the developmental plans for Bengaluru, including the construction of a skydeck.

These companies have already conveyed their interest in giving loans to meet the land acquisition cost, which stands at a whopping Rs 21,000 crore.

An official, who attended the meeting, told TNIE that the idea was mooted by the finance department so that the 73-km project can go ahead somehow.

“The BDA has not received many bids for the PRR project in the three rounds of tendering and the recent bid by the Kenyan firm too stands cancelled as they submitted bogus documents. The option being considered now is to make the BDA itself implement the project with financial assistance from HUDCO or REC to fund the land acquisition cost. For the project construction cost, JAICA had already given its ‘in principle’ approval for a loan up to Rs 4,500 crore long ago,” the official said.

Meanwhile, addressing the media after the meeting, Shivakumar asked why they should include Ramanagara or Channapatna into Bengaluru. “Ramanagara will remain wherever it is. So will Channapatna, Kanakapura and Magadi,” he said.

To question on whether the concept of a Greater Bengaluru is to divide BBMP, Shivakumar said the concept doesn’t mean that the city will be split. “The master plan related to many developmental works related to Bengaluru is ready. I will give a presentation to Chief Minister Siddaramaiah next week,” he said.

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