The government estimated the entire project to cost Rs 17,698 crore, while the Adani Group has quoted Rs 22,267 crore.
Bengaluru: Deputy Chief Minister D K Shivakumar on Monday announced that the state government would fund only 40% of the Bengaluru tunnel road project’s estimated cost, regardless of the bid amount.
“The project will be executed under the build, operate and transfer (BOT) model, with the private agency required to invest whatever is necessary. The government will fund only 40% of the estimated cost, which is about Rs 1,200 crore per km. We will not pay anything more,” he said at a press conference.
He declined to give details, saying he is yet to see the documents regarding the bids submitted for the project.
Shivakumar made the comments in response to a question about the impact of the high bid amounts quoted by the Adani Group for both packages of the 16.75-km Silk Board Junction-Hebbal underground road.
The ports-to-power conglomerate quoted about 24% higher for the first package and 28% higher for the second.
The government estimated the entire project to cost Rs 17,698 crore, while the Adani Group has quoted Rs 22,267 crore.
The conglomerate quoted Rs 10,867 cr for the Hebbal-Seshadri Road package compared to the government estimate of Rs 8,770 crore. Similarly, it quoted Rs 11,400 cr for the Seshadri Road-Madiwala package, against the government estimate of Rs 8,928 crore.
DH was the first to report the development. Four infrastructure companies had participated in the tenders for the project. Two were disqualified during the technical stage.
Forty per cent of the funding will come from the government, while 60% will be raised by the private concessionaire. The tender conditions allow toll collection rights for 30 years, extendable by another 10, along with six acres of land for commercial development.