The Karnataka Cabinet has approved the 117-kilometre Bengaluru Business Corridor project, formerly known as the Peripheral Ring Road, with an estimated cost of Rs 270 billion. The project is expected to be completed within two years and aims to reduce Bengaluru’s traffic congestion by nearly 40 per cent.

Deputy Chief Minister D.K. Shivakumar announced that multiple compensation options will be made available to affected landowners to ensure consensus and prevent delays. The corridor is envisioned as a crucial alternative route that addresses the city’s long-standing transport bottlenecks and supports economic expansion.

Compensation Options for Landowners Landowners will have four compensation choices, including payment at twice the market value of their land or allocation of developed land in Bengaluru Development Authority (BDA) layouts. “If some landowners do not want commercial land, we will provide them with 40 per cent of developed land in BDA layouts. Only those with less than 20 gunta of land will receive cash compensation,” Shivakumar said.

The government has ruled out denotification of any land. In cases where owners refuse to surrender their land, compensation will be deposited in court, allowing the project to proceed without interruption.

The Deputy Chief Minister also stated that the total project cost, initially pegged at Rs 270 billion, could drop below Rs 100 billion if more farmers opt for land-based compensation. This, he said, would significantly reduce the financial burden on the state.

Funding and Route Details The project will be funded through a Rs 270 billion loan from the Housing and Urban Development Corporation (HUDCO). Toll policies are yet to be finalised, though a toll system is expected to be implemented once the corridor becomes operational.

The 117-kilometre stretch will connect Tumakuru Road to Mysuru Road, passing through Yelahanka and Electronic City. Of this, 73 kilometres will run through North Bengaluru, while the remaining section will cover the southern parts of the city.

To align with the Bengaluru–Mysuru Expressway, the road width has been reduced from 100 metres to 65 metres. A five-metre stretch has been reserved for a future metro line, and the remaining 35 metres of land will be returned to farmers as part of the compensation package.

“This project had been gathering dust for two decades due to a lack of political will,” Shivakumar remarked. “We are rewriting history by launching this landmark road project that combines infrastructure expansion with flexible and fair compensation mechanisms.”