Bengaluru Business Corridor: Global Tenders Floated For 20km First Phase Works At ₹3,348 Crore Cost
The project will use a design, build, operate and transfer model and includes 10 years of operations and maintenance.
By Anil Gejji
Published : March 31, 2026 at 6:22 PM IST
Bengaluru: The 20-year wait for Bengaluru's peripheral ring road, now called the Bengaluru Business Corridor (BBC), appears to be ending soon. The Bengaluru Development Authority (BDA) floated global tenders inviting bids from road builders worldwide for a 19.8km stretch of BBC, which connects the Tumakuru and Ballari roads on the city's outskirts. The estimated cost for the first phase of work is Rs 3,348 crore.
This forms the first phase of the 74km BBC project, which has been split into three packages based on the progress in the ongoing land acquisition. The 65-meter wide stretch will have 12 lanes. Of these 8 lanes will be part of the main carriageway, and four lanes will be service roads. Construction of a grade separator at Hesaraghatta junction, five km of flyovers, bridges, three railway overbridges and dedicated crossings over the forest and lake are also part of the first phase.
The project will use a design, build, operate and transfer model and includes 10 years of operations and maintenance. The tender is expected to be finalised by May 2026. According to the tender documents, the project deadline is 36 months from the date the work order is awarded.
In the second phase, BDA plans to take up the Ballari Road -Old Madras Road stretch via Hennur Road. The third phase will cover the stretch up to Hosur Raod. Officials from the Bengaluru Business Corridor Project Limited said they have acquired 83% of the land for the first phase.
The BDA will fund the BBC project estimated at ₹20,000 crore to ₹22,000 crore, through a loan from the Housing and Urban Development Corporation (HUDCO). Most of the allocation is for land acquisition. "The exact project cost will depend on how many landowners opt for cash compensation or developed land," says an official from BBCPL.
The Government has offered four compensation options for farmers who lose their land for the project. While land losers will get twice the market value in cash compensation in urban areas, those from rural areas will get thrice the market value. Those who do not want a cash component can opt for TDR (Transferable Development Rights) or FAR (Floor Area Ratio) or 35% of their land in commercial land or 40% in residential layouts. However, those losing less than 20 guntas must opt only for cash compensation.
The project was initially proposed in 2007 during the JDS-BJP coalition government to ease traffic congestion in the city. Since then, the project cost escalated from Rs 3,000 crore to Rs 27,000 crore mainly due to rising land prices. The government proposed to build the road thorugh an 100 per cent from the successful bidder.
It floated twice - in 2022 and 2024 - but no bidder participated due to the high cost of land acquisition, forcing the government to build it by raising loans. The government hopes to reduce the project's cost by Rs 8,000 crore to Rs 10,000 crore by persuading landowners to opt for developed land instead of cash compensation.
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