Bengaluru Business Corridor Aims for 2029 Completion Amid Persistent Challenges
The long-delayed Peripheral Ring Road (PRR), now rebranded as the Bengaluru Business Corridor (BBC), has received a renewed push from the state government, which has set a new completion deadline of 2029. This 73-km corridor is designed to connect Tumakuru Road to Hosur Road via Ballari Road and Old Madras Road, positioning it as a critical infrastructure project to alleviate congestion on Bengaluru's arterial roads. With an estimated cost of Rs 27,000 crore, the project will be financed through a loan from the Housing and Urban Development Corporation (HUDCO).
Historical Delays and Renewed Momentum
The government's renewed focus on the BBC comes amid mounting pressure to address Bengaluru's worsening traffic crisis and persistent questions about why the project has remained stalled since its initial notification in 2007. A former minister noted, "It is a project that got caught between policy and protest; while policy pertained to land acquisition challenges, protest was by landowners alleging the compensation was not adequate." Progress only began to accelerate after former IAS officer LK Atheeq took over as chairman of the project a few months ago.
Land Acquisition and Compensation Disputes
Approximately 2,560 acres are required for the corridor, but compensation disputes have sparked sustained opposition from farmers and landowners. The conflict largely stems from the Bangalore Development Authority (BDA) choosing to acquire land under its own Act instead of the more recent 2013 land acquisition law, which offers higher compensation and rehabilitation benefits. Farmer groups argue that the compensation being offered, based on guidance values frozen since 2016, is far below market rates. A landowner from Kodathi stated, "We will not get even a fraction of the actual value of our land," highlighting stark disparities between official compensation and prevailing market prices.
Project Modifications and Compensation Options
The project alignment has undergone changes, and the PRR obtained environmental clearance only in 2023. In October 2025, the cabinet cleared the proposal for the business corridor, reducing the previous design width from 100 metres to 65 metres. The remaining 35-metre width along the corridor is designated for compensating land losers and carving out commercial plots. Subsequently, the government introduced five compensation options for land losers:
- Ex-gratia cash compensation
- Transferable Development Rights (TDR)
- Grant of Floor Area Ratio (FAR)
- Commercial sites along the corridor
- Residential sites in Shivaram Karanth Layout or nearby residential layouts
However, the PRR Farmers and Landowners Association has rejected all five options. Association president B Srinivasa, who owns land in Mavallipura, criticized the options, saying, "The guidance values in 74 villages have not been revised since 2016 at the behest of BDA. For Shivaram Karanth Layout, BDA offered Rs 4.7 crore per acre, but only Rs 3.3 crore for PRR," pointing out inconsistencies in BDA's cash compensation formula.
Phased Rollout and Official Confidence
Authorities are now attempting a phased rollout, starting with a 23-km stretch between Madavara and Yelahanka (Package-1). Officials report that about 50% of the land for this stretch has been acquired. BBC chairman LK Atheeq explained, "We will proceed package-wise. Each stretch can function independently." To move forward with tenders, at least 80% of the land must be secured—a target the agency has yet to achieve. Despite these challenges, deputy chief minister DK Shivakumar expressed confidence, announcing in the ongoing legislature session that the project would be completed at any cost, regardless of obstacles.
Significance and Hurdles of the Bengaluru Business Corridor
If completed, the Bengaluru Business Corridor is expected to deliver substantial benefits for the tech capital:
- Divert heavy traffic away from the congested Outer Ring Road
- Improve airport and inter-city connectivity
- Unlock new urban and commercial zones along the periphery
Key project details include a length of 73 km, a route from Tumakuru Road to Hosur Road, an estimated cost of Rs 27,000 crore, funding from HUDCO, over 2,500 acres of land required, and 33,000 trees to be felled. The current status involves ongoing land acquisition, with a new deadline set for 2029.
Hurdles that have plagued the project for nearly two decades include:
- Land acquisition disputes: Farmers demand compensation under the 2013 law, while BDA uses its own Act
- Compensation gap: Guidance values frozen since 2016 have reduced payout calculations
- Legal challenges: Courts are hearing petitions on whether the project has lapsed
- Alignment changes: Revised routes have brought new land parcels into acquisition
- Scale of the project: Acquiring over 2,500 acres in a rapidly urbanising region remains a massive challenge
