Bengaluru Approves 117-km Business Corridor; Traffic Could Drop by 40%!

Once the Corridor becomes Operational, Vehicles will Move between Highways and Industrial Zones, Bypassing the City Core

Bengaluru has approved a 117-km business corridor to improve connectivity between key commercial zones. Once completed, the business corridor will reportedly reduce traffic congestion by 40%.

Infamous for its traffic jams, Bengaluru is looking to decongest the city with this Peripheral Ring Road (PRR) project. 

Bengaluru Business Corridor

The Karnataka cabinet has approved the long-pending road project with a new identity, the Bengaluru Business Corridor. The project will be executed under the Bengaluru Development Authority (BDA) and is expected to be completed within the next two years.

Announcing the development, Karnataka Deputy Chief Minister DK Shivakumar said the project would be a "historic step" towards decongesting the city.

"Bengaluru is choking. We want the traffic to come down. I know about 1,900 families will be affected, but the government is offering more than what they are expecting as compensation. It's one of the biggest decisions of the Karnataka government," he said.

“It was earlier called the Bengaluru Business Corridor, the Peripheral Road. It stretches from Tumakuru Road to Electronic City, and from Electronic City to Mysuru Road… The project planning has already been completed. The road will be built by the BDA as a toll road with space for the Metro. The Peripheral Road will be completed within two years," Shivakumar said.

Land-based Compensation System

The project, originally estimated at Rs 27,000 crore, is now expected to cost less than Rs 10,000 crore, as a larger number of farmers are opting for land-based compensation rather than cash payments.

According to Shivakumar, the government anticipates a 40 per cent reduction in city traffic once the corridor is operational, as vehicles moving between highways and industrial zones will bypass the city core.

"If some landowners refuse to give land, we will deposit the compensation amount in court and proceed. No land will be de-notified at any cost," he asserted.

The government has announced a new 5-option compensation package for affected farmers and landowners:

Cash compensation is twice the guidance value for urban areas and thrice the guidance value for rural areas within 5 km of city limits, based on the October 2023 rates.
Transfer of Development Rights (TDR) equivalent to twice the guidance value, as per the Bruhat Bengaluru Mahanagara Palike (BBMP) norms.
Additional Floor Area Ratio (FAR/FSI) for use on the remaining land along the project stretch.
For those losing more than half an acre in residential areas, the government will provide 40% of the developed land in nearby layouts.
In the case of developed commercial land, 35 per cent of developed plots in a 35-meter commercial corridor abutting the project, with smaller landowners receiving cash instead.
 

The Execution Plan

The project, to be executed by the Bengaluru Development Authority (BDA), will run parallel to NICE Road and is designed as a 60-meter-wide toll road, with space reserved for a future Metro corridor.

The government plans to secure a Rs. 27,000-crore loan from Housing and Urban Development Corporation (HUDCO) to fund the project. 

Explaining the revised plan, Shivakumar said the earlier version had proposed a 100-meter-wide road, but the new design limits the width to 60 meters, similar to the Bengaluru–Mysuru expressway. 

“The remaining land,” Shivakumar said, “will be returned to farmers for commercial use as part of compensation.”

Officials said the Bengaluru Business Corridor will not only serve as a key traffic relief measure but also open up large tracts of land for commercial and industrial development. In the coming years, the Bengaluru Business Corridor will open up new investment scopes.