The Peripheral Ring Road, (PRR)65-km eight-lane road project, aimed at decongesting vehicular traffic in the city, was conceived in 2006. The whopping Rs 8,100 crore that needed to be paid to farmers as compensation for the acquisition of 1,910 acres of land needed for the project caused it to come to a standstill due to the paucity of funds with the BDA. Japan International Cooperation Agency has agreed to fund Rs 3,850 crore of the project cost.
Meanwhile, the SPV is also looking at generating nearly Rs 9,918 crore by the levy of betterment tax on properties lying within a 1-km distance on both sides of the road and other ways.
The cost of the project is funded by both Central Government and the State Government and the approximate expenditure may be in the range of over Rs.20,000 crore.
The SPV was formed in the name of Bangalore Development Corporation Ltd with the Registrar of Companies to implement the Rs 11,950-crore Peripheral Ring Road (PRR) project was mooted, it finally became a reality on July 18.
Apart from BDA, the Karnataka Urban Infrastructure Development Finance Corporation, BBMP, BMTC, BESCOM, BWSSB and the state government’s Town and Country Planning Department are partners in this independent body.
The National Highways Authority of India has been entrusted with the role of preparing the Detailed Project Report for it.
All the properties in and around PRR will be connected and the property rates will go up.