Greater Bengaluru Authority Township Project to Generate Rs 15,429 Crore Surplus

Greater Bengaluru Authority Suburban Township Projected to Yield Significant Surplus

Bengaluru: The proposed Greater Bengaluru Authority (GBA) suburban township, previously known as the Bidadi satellite township, is anticipated to generate a surplus of Rs 15,429 crore for the government upon completion. The project timeline is estimated at three years, according to documents accessed by TOI.

The total project cost is pegged at Rs 18,133 crore, which includes interest payments to banks and non-banking financial companies (NBFCs). The government expects overall revenue of Rs 33,562 crore from the sale of developed land and other sources.

Land Pricing and Compensation Framework

Saleable land is expected to be priced at approximately Rs 2,200 per square foot for industrial use and Rs 2,300 per square foot for commercial use. As part of the compensation framework, 9,693 residential sites and 8,723 commercial sites will be allotted to landowners who part with their land.

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After accounting for compensation and mandatory green spaces, about 44.5% of the total project area will remain available for development by the authority. This land is proposed to be monetised through bulk sales, along with additional revenue streams such as property tax and premium floor area ratio (FAR).

Revenue Breakdown

Of the projected revenue, Rs 22,654 crore is expected from site sales. Property tax and premium FAR are estimated to contribute Rs 5,739 crore and Rs 5,169 crore, respectively. As a preparatory step, GBA plans to float international tenders to appoint a project management consultancy, with an estimated cost of Rs 31 crore.

Funding and Financial Structure

On the funding side, the Bangalore Development Authority (BDA) is expected to invest Rs 3,000 crore as equity in exchange for 551 acres of developed land. Additional funding includes Rs 7,500 crore from financial institutions and Hudoc, while GBA plans to raise Rs 3,650 crore by mortgaging civic amenity sites.

The cabinet is learnt to have set aside concerns raised by the finance department over minimising government liability through a public-private partnership (PPP) model. Officials cited the project's structure, where nearly 60% of the land is earmarked for acquisition and development to compensate landowners, as a key factor.

Implementation Strategy

The finance department had suggested a phased implementation to reduce financial risk. However, the urban development department opposed the move, warning that delays could significantly escalate land acquisition costs and jeopardise project completion. The township, which has faced delays for over a decade in its earlier Bidadi avatar due to multiple setbacks, is now being pushed as a major urban expansion initiative.