JICA to finance Rs.12,000 cr road project

The ring road project, which entailed an investment worth Rs.12,000 crore finally saw light at the end of the tunnel with the JICA deciding to finance the mega project. In the fast changing scenario, the Bangalore Development Authority (BDA) is giving shape to the special purpose vehicle (SPV) created to implement the project, where the BDA and the Karnataka Urban Infrastructure Development & Finance Corporation (KUIDFC) have equal stakes. The ring road project is a big ticket infrastructure project, the SPV for which have equity contributions of Rs.12.5 crore each from the BDA and the KUIDFC. The project has been stuck for a long time as it will connect four highways -Tumakuru Road, Ballari Road, Old Madras Road, and Hosur Road. The road will, in turn, create seamless connectivity with Kanakapura Road and Mysuru Road, two other major highways connecting to Tamil Nadu and Kerala. The proposed RR project is also very close to the proposed National Investment & Manufacturing Zone and it also falls along the Bengaluru-Chennai Industrial Corridor. The Centre has offered to fund the road construction cost but wants the state to bear the land acquisition cost. Of the Rs.12,000 crore estimated project cost, land acquisition alone makes up Rs.8,100 crore.