Bangalore Development Authority Gets Approval for Six New Layouts Along Peripheral Ring Road-2

The Bangalore Development Authority (BDA) has received approval to develop six new layouts along Peripheral Ring Road-2, with the largest layout covering over 4,200 acres along Kanakapura Road. The layouts aim to compensate land losers to the road project with developed land. The BDA is raising ₹27,000 crore debt to finance PRR-1 and plans to complete the circle with 53-km-long PRR-2.

The Bangalore Development Authority (BDA) has received approval to develop six new layouts along the Peripheral Ring Road-2 (PRR-2), with the largest layout covering over 4,200 acres along Kanakapura Road. This initiative aims to compensate land losers to the road project with developed land, as part of the broader PRR-1 project.

The BDA is raising ₹27,000 crore in debt to finance PRR-1, with plans to complete the circle with the 53-km-long PRR-2. The new layouts are expected to mitigate the impact of land acquisition on farmers and provide them with developed land in exchange for their acquired land. This move is part of the BDA's strategy to address environmental concerns and ensure compliance with the directions issued by the Ministry of Environment, Forest and Climate Change.

The development of these layouts is seen as a significant step towards decongesting traffic in Bangalore and improving connectivity to areas such as Sarajapur Road, Old Madras Road, and Bellary Road. The PRR-2 project is expected to become an economic corridor, similar to the Outer Ring Road (ORR), which has seen substantial real estate expansion over the years.

The BDA has also proposed innovative financing models to push the progress of the PRR-2 project. One such model involves developing residential areas on government land on the peripheries and compensating farmers with developed land in exchange for their acquired land. Another option discussed is the hybrid annuity model, where the BDA will collect tolls and gradually refund the developer.

The PRR-2 project is subject to compliance with environmental regulations and directions issued by the Ministry of Environment, Forest and Climate Change. The BDA has been advised to alter the alignment if heritage trees stand in its way and to explore innovative solutions to minimize environmental impact.

The development of these new layouts is expected to attract interest from real estate developers and investors, as the improved connectivity and potential for Special Economic Zones (SEZs), Data Centres, Logistic Parks, and IT Centres along the PRR-2 corridor offer significant opportunities for growth.

The BDA has also suggested exploring the possibility of issuing a premium floor area ratio (FAR) and collecting betterment fees from developers of residential and commercial buildings that will benefit from the PRR-2 corridors. This will contribute to the long-term financing of the project.

The PRR-2 project is expected to bring about significant changes in Bangalore's real estate landscape and improve overall connectivity and traffic management in the city. The BDA's efforts to address environmental concerns and provide compensation to land losers are crucial steps towards the successful implementation of this mega project.

References:
[1] https://www.99acres.com/articles/bangalore-peripheral-ring-road-updates.html