Karnataka approves Bengaluru tunnel road projects under BOOT model

The Karnataka Cabinet has approved the construction of two major tunnel road corridors in Bengaluru through the Build-Own-Operate-Transfer (BOOT) model, paving the way for toll-based infrastructure development. The projects, aimed at decongesting the city’s traffic, will connect Esteem Mall near Hebbal to HSR Layout/Silk Board, and KR Pura to Mysuru Road.

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These corridors will be executed via a global tendering process, with a 30-year concession period allowing private developers to recoup investments through toll collection. The BOOT model was selected over other options, including the Hybrid Annuity Model and involvement of the National Highways Authority of India.

The Hebbal to Silk Board corridor, estimated to cost around ₹17,780 crore, is expected to see tenders issued within the next week. A detailed project report proposes tolls based solely on car travel, with an initial rate of ₹330 for the 16.6-km stretch. The toll pricing is structured to increase annually by 5% of the Wholesale Price Index, subject to a 40% cap, starting from the financial year 2030-31.

Proposed tolls for other routes include ₹320 from Hebbal to HSR Layout (16.3 km), ₹250 to Hosur Main Road (12.79 km), ₹180 to Seshadri Road (9.05 km), and ₹195 from Race Course to Silk Board (9.8 km). Other estimated tolls range between ₹130 and ₹320, depending on the distance and connectivity.