Deputy Chief Minister DK Shivakumar instructs BDA to revive the Peripheral Ring Road project
The Peripheral Ring Road (PRR) project in Bengaluru, aimed at easing traffic congestion, has been stagnant for 18 years due to legal disputes and cost issues. Deputy Chief Minister DK Shivakumar has directed the Bangalore Development Authority (BDA) to explore innovative financing models to revive the project and move it forward.
Challenges faced by the PRR project
The PRR project has faced obstacles including land acquisition disputes and high costs. Land acquisition from farmers has been a major point of contention, and despite previous attempts to move the project forward, no investors or concessionaires have shown interest due to controversies surrounding land acquisition and increased costs.
Innovative financing models under consideration
During a meeting with Shivakumar, BDA officials discussed the challenge of mobilizing funds for the project. One proposed solution involves developing residential layouts on government land and compensating farmers by providing them with developed land in exchange for their acquired properties. Another option is to adopt a hybrid annuity model, similar to NHAI’s Bengaluru-Mysuru expressway project, where the implementing agency invests 40% of the project cost while the remaining funds are provided by private investors or concessionaires.
Potential sources of funding
The BDA is considering collecting tolls on the PRR and gradually refunding the developer for their work on the project. Additionally, they are exploring the possibility of issuing a premium Floor Area Ratio (FAR) and collecting betterment fees from developers of residential and commercial buildings that will benefit from the PRR corridors. These funds would contribute to the long-term financing of the project.
The way forward
Before initiating a new tender process, the BDA aims to clarify the financing model further. They plan to seek input from various stakeholders to ensure a well-informed implementation of the project.
About the Peripheral Ring Road (PRR) project
The PRR is a planned 74 km stretch that aims to alleviate traffic congestion in Bengaluru. It will connect Tumakuru Road and Hosur Road via multiple routes. The total land requirement for the project has been revised to 1036.51 hectares due to changes in the project’s length. The estimated cost of the project is Rs 14,934 crores, with a significant portion allocated for land acquisition and rehabilitation.
Significance of the PRR
The PRR project is crucial for addressing traffic challenges in Bengaluru. With the city’s expanding geographical area and increasing vehicular ownership, the PRR will provide much-needed relief and economic benefits by improving city-region connectivity and reducing congestion.
Environmental considerations
The PRR project has received initial environmental clearance, but concerns have been raised about its impact. The project involves the diversion of forest land and the removal of a large number of trees. The BDA has proposed measures to mitigate the environmental impact, such as planting ten trees for every tree removed and implementing dust and pollutioncontrol measures during construction.
