Bengaluru civic body to borrow Rs 19,000 crore for tunnel road project

Karnataka deputy CM DK Shivakumar has been pushing for his vanity projects—tunnel roads, Skydeck, double-decker (Metro-cum-Road) flyovers, elevated corridors, metro extensions to the outskirts, and an amusement park near the Krishnaraja Sagar (KRS) dam in Mandya.

Bengaluru’s civic body, Bruhat Bengaluru Mahanagara Palike (BBMP), plans to raise Rs 19,000 crore in loans from banks and financial institutions to finance its ambitious North-South twin tunnel road project.

BBMP has invited Expression of Interest (EOI) from financial institutions and banks to fund this project, which will be executed on a Build-Operate-Transfer (BOT-Toll) model.

Also, read: Rodic Consultants to prepare DPR for Bengaluru's first tunnel road; to submit report in two months

According to the document, the ‘three-lane Bengaluru twin tunnel project’ is envisioned as an underground vehicular corridor to improve mobility, reduce congestion, and foster sustainable urban growth in Bengaluru.

The proposed tunnel road will connect Hebbal Esteem Mall Junction to Silk Board KSRP Junction, covering a total distance of around 18 Km.

Also, read: Bengaluru traffic: IISc bats for Inner Ring underground Metro over DKS’ tunnel road plan

Bengaluru’s Tunnel Road Project

As per the EOI, financial institutions, including multilateral and bilateral development banks, Indian development financing institutions, and scheduled public and private commercial banks, are eligible to participate.

These institutions must be registered with the Reserve Bank of India (RBI) or other relevant authorities and possess at least five years of lending experience.

Also, read: 'Brand Bengaluru' caught between DK Shivakumar’s vanity projects and city's crumbling infra

“The loan, including interest and other charges, will be secured by a first mortgage and pari-passu charge on BBMP properties, as agreed upon by the parties. The first installment of the loan is expected to be withdrawn on April 1, 2025, with full disbursement completed by December 31, 2027”, it said.

Moneycontrol had earlier reported that BBMP awarded a contract to New Delhi-based Rodic Consultants Private Limited, for preparing the Detailed Project Report (DPR) at a cost of Rs 9.4 crore, including GST. Additionally, Altinok Consulting was engaged to conduct a feasibility study for Rs 4.7 crore.

The project comprises four key connecting stretches with multiple entry and exit points. The route will cover Esteem Mall, Hebbal, Mekhri Circle, and Palace Grounds, continuing to the Golf Course, Race Course, Palace Road, and Chalukya Circle, before moving on to Lalbagh and finally connecting to the Silk Board KSRP Junction.

Also, read: Rs 36,950 cr for tunnel roads, elevated corridors in Bengaluru: DK Shivakumar meets PM Modi and seeks funds