The peripheral ring road (PRR) project of the Bangalore Development Authority (BDA), which has witnessed endless delays on account of litigations and fund crunch, is all set to take off now with the help of foreign funding.
Speaking to The Hindu on Tuesday, BDA Commissioner T. Sham Bhat said that the Japan International Cooperation Agency (JICA), a multinational aid agency, had come forward to assist the PRR project with a soft loan of Rs. 3,800 crore.
The proposed 65-kilometre, 75-metre-wide road will connect Tumkur Road with Hosur Road via Doddaballapur Road, Bellary Road, Old Madras Road and Sarjapur Road.
Mr. Bhat said that the cabinet had approved the proposal and that it was being scrutinised by the Union government. “The Chief Secretary [Karnataka] has informed us that the Union government is satisfied with the proposal and will grant permission within 10 days,” he said, expressing hope that the memorandum of understanding (MoU) with JICA would be signed in a month.
When asked why the BDA, which is already saddled with massive debts, is borrowing further, Mr. Bhat said that JICA had offered them an extremely attractive low interest loan. “They approached us and no other Indian bank or aid agency came forward,” he said.
The acquisition of 1,900 acres for the PRR project is complete, Mr. Bhat said, as a result of a High Court order that set aside objections to the notifications. The cost of the PRR project is Rs. 5,800 crore of which the BDA has already incurred an expense of Rs. 2,000 crore towards compensation to land losers.
