Bengaluru Tunnel Road project hits major hurdle as bids overshoot government estimate

Even before construction begins, the ambitious Silk Board–Hebbal tunnel road faces fresh uncertainty as tender bids exceed the government’s ₹17,698 crore estimate, forcing the project back to the Cabinet amid toll-related backlash.

The Bengaluru tunnel road project has reached a decisive moment, with the state government facing a tough call on its next course of action. While the Adani Group has emerged as the lowest bidder, the quoted amount is still significantly higher than the government’s estimated project cost, pushing the proposal into fresh uncertainty.

The government had estimated the cost of the ambitious Silk Board-Hebbal underground corridor at ₹17,698 crore. However, bids received during the tender process exceeded this figure by a wide margin. The Adani Group quoted ₹22,267 crore, while Hyderabad-based Vishva Samudra Engineering placed an even higher bid of ₹25,474 crore.

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This leaves the government with two clear options.

The first option is to cancel the tender entirely since all qualified bids are above the approved estimate. If the tender is scrapped, the government will have to invite fresh bids, leading to further delays. Officials point out that this is not without risk, the first round of tenders had failed completely, with no companies coming forward. It was only during the second attempt that four firms participated, of which only two were eventually found eligible.

The second option before the government is to enter negotiations with the Adani Group, which has quoted the lowest amount among eligible bidders.

Given the scale of the project and the strict budget framework, officials admit that many companies are reluctant to show interest. As a result, the government may attempt to negotiate and bring down the quoted cost through discussions with Adani.

The tunnel road project proposes a 16.5-kilometre-long underground road connecting Silk Board to Hebbal, aimed at easing Bengaluru’s chronic traffic congestion. The work is planned in two packages, with the first stretch from Hebbal to Mekhri Circle and the second from Mekhri Circle to Silk Board.

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Adding to the complexity is the growing public opposition to toll charges. The government has already proposed a toll of ₹330 for a one-way journey and ₹660 for a two-way trip, which has drawn strong criticism from commuters. With the overall project cost now rising beyond estimates, there are fears that toll rates could be increased further, shifting the financial burden onto citizens.

Due to the cost escalation, the project has once again been placed before the state Cabinet, which will discuss whether to approve a higher budget, renegotiate bids, or cancel the tender altogether. Any decision is expected to have political repercussions, with opposition parties already signalling resistance.

As Bengaluru waits for relief from traffic congestion, the future of the tunnel road project now depends on whether the government chooses renegotiation or a complete reset.

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