Karnataka’s state capital, long plagued by crippling traffic congestion, is set to undergo a transformative infrastructure overhaul with the approval of the 117-km Bengaluru Business Corridor, previously known as the Peripheral Ring Road (PRR). The Karnataka cabinet has greenlit the project, to be executed by the Bengaluru Development Authority (BDA) at an estimated cost of Rs 10,000 crore (approximately $1.2 billion). The corridor is slated for completion within two years, marking a significant step toward decongesting the city.

Karnataka Deputy Chief Minister DK Shivakumar described the initiative as a “historic step” to alleviate Bengaluru’s traffic woes. “Bengaluru is choking. We want the traffic to come down,” Shivakumar stated, projecting a 40% reduction in city traffic upon the corridor’s completion. The project will enable vehicles traveling between highways and industrial zones to bypass the city’s core, easing pressure on its overburdened road network.

Initially budgeted at Rs 27,000 crore, the project’s cost has been significantly reduced due to a higher-than-expected number of farmers opting for land-based compensation over cash payments. The government has introduced a comprehensive five-option compensation package to address land acquisition challenges, particularly for the approximately 1,900 families affected. The package includes:

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1. Cash Compensation: Twice the guidance value for urban areas and thrice the guidance value for rural areas within 5 km of city limits, based on October 2023 rates.
2. Transfer of Development Rights (TDR): Equivalent to twice the guidance value, as per Bruhat Bengaluru Mahanagara Palike (BBMP) norms.
3. Additional Floor Area Ratio (FAR/FSI): Available for use on remaining land along the project stretch.
4. Developed Land Allocation: For those losing more than half an acre in residential areas, 40% of developed land in nearby layouts.
5. Commercial Land Compensation: For developed commercial land, 35% of developed plots in a 35-metre commercial corridor adjacent to the project, with smaller landowners receiving cash payments.

Shivakumar emphasized the government’s commitment to fair compensation, stating, “If some landowners refuse to give land, we will deposit the compensation amount in court and proceed. No land will be de-notified at any cost.”

Beyond its primary goal of traffic reduction, the Bengaluru Business Corridor is poised to unlock significant commercial and industrial development opportunities. By opening large tracts of land for investment, the project aims to position Bengaluru as a leading hub for economic growth. The initiative reflects the Karnataka government’s broader vision to balance urban development with infrastructure modernization, addressing the needs of a rapidly growing metropolis.

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