In a major infrastructure push, the Karnataka Cabinet has approved the long-pending Peripheral Ring Road (PRR) project for Bengaluru and rebranded it as the Bengaluru Business Corridor (BBC).
Speaking after the cabinet meeting, Deputy Chief Minister D.K. Shivakumar, who also heads the Bengaluru Development portfolio, announced that the 117-km corridor will stretch from Tumakuru Road to Electronic City, forming a crucial outer link to decongest the city’s core areas.
“Previous governments wanted to drop the project, but Bengaluru now needs an alternative road network. We’ve decided not to denotify any land,” Shivakumar said.
Compensation Policy for Landowners
The Deputy CM explained that the new plan includes a comprehensive compensation model to benefit landowners:
- The notified width of the road is 100 metres, but only 65 metres will be used for construction. The remaining 35 metres will be returned to landowners for commercial development.
- Farmers will receive 35% of the developed land back as compensation, or 40% if they prefer residential use.
- There is also a provision for cash compensation for land up to 20 guntas (half an acre).
- Those opting out of land compensation can receive Transferrable Development Rights (TDR) or alternative BDA land, with double TDR value as per BBMP rules.
- Landowners who prefer monetary compensation will have their amount deposited in court if not collected.
Project Scale and Impact
The ₹27,000-crore project is expected to reduce Bengaluru’s traffic congestion by up to 40%, creating a faster link between major highways and industrial hubs. The government plans to fund it partly through loans and will implement tolling along the corridor.
The PRR/BBC will also feature service roads, modern traffic management systems, and real estate zones designed to boost business activity around the city.
Shivakumar added that under the new compensation model, the overall project cost could be reduced by ₹10,000 crore, and the required land acquisition—about 1,800 acres in northern Bengaluru—will begin immediately.
“This is a new chapter in Bengaluru’s development. We are building 117 km of new road that will reshape how people and goods move around the city,” said Shivakumar.
The Bengaluru Development Authority (BDA) will oversee the execution, targeting completion within two years. A new TDR exchange system will also be introduced to simplify compensation and ensure transparency.
