Citizen groups label Bengaluru’s tunnel road as a vanity infrastructure with a hidden real‑estate component that could generate up to ₹30,000 crore in ancillary revenue. They urge lawmakers to reject the project and demand evidence‑based planning.

Key Takeaways

  • Potential hidden real‑estate revenue could reach ₹30,000 crore
  • Intermodal hubs allow FSI up to 5, enabling high‑rise development
  • Citizen groups call the project vanity infrastructure and demand evidence‑based planning

Citizen coalition Bengaluru Praja Vedike (BPV) has branded the ambitious tunnel road as a “real estate project in disguise.” In a letter to all city MPs and MLAs, the group called the scheme “vanity infrastructure that repeats flyover failures” and urged lawmakers to reject it.

The draft concession agreement obliges the concessionaire to construct intermodal hubs at five strategic junctions – Hebbal, Palace Grounds/Mehkri Circle, Race Course, Lalbagh and Silk Board – covering a total of 6.13 acres transferred by the state. Each hub is slated to be a five‑storey plaza with parking, a service floor, and two retail floors.

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According to Bengaluru Smart Infrastructure Ltd. (B‑SMILE), these hubs could generate annual ancillary revenue of ₹250‑₹300 crore, which the agreement explicitly excludes from the concession‑period review. However, citizen groups argue that the permitted maximum FSI of 5 allows the hubs to be built as high‑rise towers, potentially inflating real‑estate earnings to over ₹30,000 crore for the 30‑year (extendable to 40‑year) concession.

Independent urban‑mobility expert Satya Arikutharam warned, “If ancillary revenue is factored into the Total Concession Value, the tunnel road could be toll‑free. The project hides a massive real‑estate component, echoing the controversies that plagued the NICE Road.”

Technical Director of B‑SMILE, B.S. Parhlad, clarified that ancillary revenue is a legal incentive modelled after agreements used by the Port Authority of New York and New Jersey. Karnataka has already raised a ₹19,000‑crore Viability Gap Funding loan, covering 40 % of the Hebbal‑Silk Board tunnel cost, with ancillary incentives layered on top.

Why This Matters

BozokMedia analysis shows that the hidden real‑estate component could reshape Bengaluru’s urban landscape, affecting housing affordability and traffic management for decades to come.

“If ancillary revenue is included in the total concession value, the tunnel road could be toll‑free.” – Satya Arikutharam, Urban Mobility Expert
Did You Know?: The earlier NICE Road project faced similar real‑estate disputes, leading to prolonged legal battles and public outcry.

Frequently Asked Questions

Question 1: What is ancillary revenue in the tunnel road project?

Answer: It is the additional income expected from retail spaces and high‑rise developments within the intermodal hubs, which the draft agreement excludes from concession‑period calculations.

Question 2: Why are citizen groups opposing the tunnel road?

Answer: They argue the scheme prioritises private real‑estate gains over public benefit, labeling it vanity infrastructure that repeats past flyover failures.