RamRajya News

Bengaluru Corridor: ₹7,000 Cr Tenders by March

The long-delayed Bengaluru Business Corridor  formerly known as the Peripheral Ring Road (PRR) Phase-1  is set to move into execution. Bengaluru Business Corridor Ltd (BBCL) plans to float civil-work tenders worth approximately Rs 7,000 crore in three packages by March 2026, BBCL chairman L K Atheeq told Moneycontrol.

Revised DPR to be ready by December

The revised detailed project report (DPR), prepared by French firm Assystem (formerly STUP), is expected by December 2025. Design changes have widened the corridor to 65 metres, with a 35-metre commercial strip planned within the carriageway to monetise land and improve project viability.

Tender strategy and package details

BBCL will split civil works into three tender packages  roughly Rs 2,500 crore each  to enable simultaneous starts and faster delivery. The packages are:

  • Package 1: Tumakuru Road to Bellary Road ~19.37 km
  • Package 2: Bellary Road to Old Madras Road  ~18 km
  • Package 3: Old Madras Road to Hosur Road ~27.75 km

Once tenders are floated, award timelines are expected to take about three months; contractors will have roughly 30 months from possession of land to complete construction.

Land acquisition, compensation and stakeholder measures

Land acquisition for Phase-1 notified originally in 2007 is nearing completion. BBCL reported progress on awards and farmer consent, with plans to finalise compensation disbursements by month-end. About 1,810 acres have been tallied so far, with an additional ~500 acres required for interchanges and cloverleafs.

Farmers have been offered five compensation options: cash, developed plots, Transferable Development Rights (TDRs), additional Floor Area Ratio (FAR), and a land-to-land swap that provides developed commercial plots along the corridor. BBCL stressed that TDRs are currently valued higher than agricultural land.

Funding model and financial viability

Earlier PPP proposals valuing the project at ~Rs 26,000 crore were abandoned due to viability concerns. The revised model limits corridor width to 65 metres and monetises the 35-metre commercial strip to reduce borrowing pressure. BBCL is evaluating execution modes  EPC or BOT and is studying NHAI’s Hybrid Annuity Model (HAM) as an alternative financing route.

Design choices and future transit provision

The corridor will be access-controlled and include underpasses or flyovers at intersections, mirroring the NICE Road’s design, to ensure uninterrupted flow. A five-metre reservation has been kept for a future metro or Bus Rapid Transit System (BRTS), offering multimodal flexibility as urbanisation grows.

Phase-2 and wider impact

Phase-2 will add a further 44 km, bringing the total corridor to 117 km. Final notifications for Phase-2 land acquisition are due soon, with compensation focused on TDRs or developed plots rather than cash grants.

BBCL projects the corridor will divert traffic from key choke points Tumakuru Road, Hebbal and Old Madras Road  and act as a growth engine for Bengaluru’s northern and eastern zones by unlocking planned urbanisation along the periphery.

Why this matters

If completed on schedule, PRR Phase-1 can substantially reduce inner-city congestion, improve freight and passenger connectivity from Electronic City to the airport, and catalyse planned development. However, timely land acquisition and clear financing will be decisive for on-ground progress.

For official project updates and approvals, see the Bengaluru Business Corridor Ltd announcements and the Karnataka government planning pages.

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