Bengaluru’s Satellite Town Ring Road hits roadblock after Centre halts Bharatmala projects

The ambitious Satellite Town Ring Road (STRR) project, aimed at easing Bengaluru's congestion, has hit a major setback after the Union government paused projects under the Bharatmala Pariyojana, citing delays and cost overruns.

The move has stalled tender finalisation for several major highway works, including STRR’s western section.

In September 2024, National Highways Authority of India (NHAI) floated Rs 4,750-crore tender for five packages of STRR-West section. In January 2025, NHAI cancelled earlier five-package tenders, repackaged them into two- Kunigal (Ramanagara) to S Mudugadapalli (Hosur) and Obalapura (Nelamangala) to Kunigal (Ramanagara)- and invited fresh tenders.

Also, read: Bengaluru’s Satellite Town Ring Road on track; NHAI floats Rs 4,750-crore tender

A senior NHAI official told Moneycontrol, “We are not able to open the tenders as Bharatmala projects have been put on hold. The project will now be taken up under the National Highways ‘other works’ category. We will finalise the tenders once the Union Cabinet approves it.”

The 280-km Bengaluru Satellite Town Ring Road (STRR, NH-948A), being developed by NHAI, is designed as a four-six lane access-controlled expressway to decongest the city and divert freight traffic away from the urban core. The corridor connects 12 satellite towns - Dobbaspete, Doddaballapur, Devanahalli, Sulibele, Hoskote, Sarjapura, Attibele, Anekal, Tattekere, Kanakapura, Ramanagara, and Magadi.

Also, read: PM Modi to inaugurate two stretches of Bengaluru Satellite Town Ring Road on March 11

Only 80km completed 

While 80 km of the stretch between Dobbaspete and Hoskote has been inaugurated, the remaining sections are unlikely to meet December 2025 deadline.

First proposed in 2005 to ease freight movement around Bengaluru, STRR was included in Bharatmala Pariyojana (Lot-3) in 2017 as a greenfield expressway linking Karnataka and Tamil Nadu. Land acquisition began in 2018, covering 1,009 hectares in Karnataka and 340 hectares in Tamil Nadu.

In June 2022, Prime Minister Narendra Modi laid the foundation stone for the project, which is being executed under the Hybrid Annuity Model (HAM). Two years later, in March 2024, Modi inaugurated the 80-km operational section.

Sources said the delay in Cabinet approval has also stalled compensation payments to farmers whose lands were acquired for the project. "The completion of this project would ease Bengaluru’s congestion by offering a freight bypass," an NHAI official said.

The official added, “We have received Stage-1 forest clearance for the stretch through Bannerghatta National Park, and the demand letter has already been raised. On the Hoskote-Tamil Nadu border stretch, we are yet to receive Technical Approval Drawings (TAD) from the railways for the Railway Over Bridge. Once received, the remaining work can be completed in about two months.”

Also, read: Bengaluru's Satellite Town Ring Road to get drone landing facilities at 4 locations

Bharatmala projects on hold

On November 11, 2023, a meeting convened by the Union Finance Ministry decided that no new liabilities would be created under Bharatmala Pariyojana Phase-I until revised Cabinet Committee on Economic Affairs (CCEA) approval was obtained.

A follow-up letter dated November 16, 2023, from the secretary (expenditure) stated that no new works or contracts should be approved under Bharatmala until CCEA approval is received, and no additional expenditure should be incurred beyond 20 percent of the 2017 sanctioned amount, except for ongoing contractual obligations and payments under the Vivad Se Vishwas I & II schemes.

Union Ministry of Road Transport and Highways (MoRTH), in a letter on November 23, 2023, instructed all agencies to adhere to these directions and avoid creating any new liabilities, including those related to land acquisition and pre-construction activities, without prior approval.

Also, read: First stretch of Bengaluru’s Satellite Town Ring Road likely to be ready by Dec 2023

STRR is among those affected by this policy freeze. Once completed, it is expected to improve connectivity to the proposed multi-modal logistics park at Dobbaspete, the Bengaluru-Pune Greenfield Expressway, and enhance access to Chennai Port and Krishnapatnam Port in Andhra Pradesh. Designed for speeds of 100 kmph, the project aims to boost freight efficiency and regional connectivity.

Also, read: Govt’s ambitious Bharatmala project appears to be in slow lane

Controversy over Bharatmala

The Centre’s decision to pause the Bharatmala Pariyojana followed a 2023 CAG report that exposed massive cost overruns and irregularities in flagship projects such as Dwarka Expressway and Delhi-Vadodara Expressway. The audit found that NHAI approved projects at several times the sanctioned cost, often without proper Detailed Project Reports (DPRs) or cost–benefit analyses, and bypassed mandatory Cabinet appraisal procedures.

A parliamentary panel also flagged irregularities in project consultancy and called for a CAG audit of past consultancy work to ensure accountability. Following these findings, the government decided to scrap Bharatmala Phase II, effectively stalling India’s largest highway expansion initiative.

Also, read: CAG flags irregularities in projects under Bharatmala Pariyojana Phase-I, cost overruns in Dwarka Expressway