9 banks show interest in Bengaluru Tunnel Project, bid deadline extended

Nine banks have expressed interest in funding Bengaluru's ambitious underground vehicular tunnel project, aimed at easing traffic congestion along the city’s North-South corridor. The Bruhat Bengaluru Mahanagara Palike (BBMP) extended the submission deadline for funding bids to January 8, 2025, to allow banks more time to formalize proposals.

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The project, estimated to cost ₹19,000 crore, will be executed under a Build-Operate-Transfer (BOT) toll model with a 40% viability-gap funding from the Karnataka government, which will also serve as guarantor for the loan. BBMP called for Expressions of Interest (EoI) on December 6, 2024, to raise ₹8,000 crore for land acquisition and other costs.

Reportedly, according to BBMP, the extension accommodates banks’ requests made during a pre-bid meeting. The bids will be evaluated to finalize the bank offering the most competitive rates. Indian Bank, Bank of India, SBI, Canara Bank, and Punjab National Bank are among the interested institutions.

The proposed tunnel will span 18 km, connecting Hebbal Esteem Mall Junction to Silk Board Junction via Mekhri Circle, Racecourse, and Lalbagh. Designed to cut travel time from 90 to 20 minutes, the project has drawn criticism from mobility experts.

A toll fee of ₹288 is proposed for the 18-km stretch, with the project operating as a public-private partnership under Deputy CM D K Shivakumar’s leadership.