Karnataka Cabinet Approves 117 KM Bengaluru Business Corridor Project
The 65-Metre-Wide road project is expected to lessen traffic burden on city roads by almost 40 per cent.
Published : October 16, 2025 at 8:39 PM IST
Bengaluru: In a major decision, the Karnataka Cabinet on Thursday approved the construction of the 117 km-long Bengaluru Business Corridor (BBC), which was earlier called the Peripheral Ring Road.
“The state government has taken a very big decision. The BBC will be constructed in a record time of two years. The new corridor will give a new impetus to Bengaluru's growth besides reducing the traffic burden on city roads by 40%,” said D K Shivakumar, Deputy Chief Minister and Bengaluru Development Minister, after the cabinet meeting.
The 65-metre-wide BBC will start and end at Bengaluru Exhibition Centre on Tumakuru Road, passing through Yalahanka, Electronic City and Mysuru Road. The corridor will have six lanes of main carriageway with two-lane service roads on either side. "We will spare 5 metres in the middle of the business corridor for the construction of a metro rail facility in the future," the DCM added.
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. But those losing less than 20 guntas will have to opt only for cash compensation.
“If anybody refuses to part with their lands for the projects, then we will deposit the amount in the court and go ahead with the construction,” he added.
On the cost of the project, Shivakumar said, as per the earlier estimation, it would have cost Rs 27,000. Now that the government is hoping that the majority of land losers will opt for alternative land, the cost is expected to come down by a little over Rs 10,000 crore, he added.
The project, planned in 2006 when union minister H. D. Kumaraswamy was the Chief Minister, was delayed due to land acquisition and funding issues. The cost of the project has seen almost an eightfold jump from its original estimation of Rs 3,500 crore in 2006.
The successive state governments wanted to build this road entirely through private funding, offering toll collection rights for 50 years as an incentive, but no bidders came forward despite floating global tenders thrice over the last five years because of the substantial land acquisition costs. This left the current government with no option but to build the road by raising loans.
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