The Bangalore Development Authority (BDA) would build the long-delayed Peripheral Ring Road in phases since it is unable to muster funds to implement the project in full.
In the first phase, it would lay the 18-kilometre stretch between the existing Nandi Infrastructure Corridor Enterprise (NICE) toll road junction on Tumakuru Road to the Kempegowda International Airport.
Taking up the project in full would cost the BDA Rs 11,950 crore and the bulk of that amount - Rs 8,100 crore - would go towards acquiring 1,810 acres and 18.5 guntas of land.
Despite holding several rounds of meetings with the investors, the agency found it harder to muster the sums needed for the full project. The Japanese agency JICA agreed to fund only the cost of constructing the road network.
"Since we had difficulties getting Rs 8,100 crore for land acquisition, breaking up the project into phases made sense," a BDA official said, wishing anonymity. "We're working out the modalities of the first phase, which would cost us Rs 3,310 crore; Rs 2,000 crore from that would go for land acquisition."
The signal-free stretch connecting the existing NICE Road will be tolled. The BDA assured the toll will be lower than that on NICE Road and on a par with NHAI charges.
The BDA is finalising the files to begin discussions with JICA. "Since we're running into difficulties with land acquisition, we'll request them to release the money in parts. This shouldn't be a problem for them," the official said.
The state government was optimistic about getting funds for the PRR under Bharat Mala, but Union Road Transport and Highways Minister Nitin Gadkari rejected it saying PRR was a state subject and the Centre was committing funds to the Satellite Town Ring Road (STRR) and Bengaluru-Mysuru Road.
The Special Purpose Vehicle set up by the state government also favoured taking up the PRR in phases since raising a Rs 3,000-crore loan from nationalised banks and Hudco would be easier.
The proposal to commercialise land along the PRR has been shelved until 2031 since people forfeiting their land are not interested in the idea.
Farmers are also not too keen on getting commercial land as compensation and are against the widening of the road's width from 75 metres to 100 metres.
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