Bengaluru: The Adani Group has emerged as the lowest bidder for both construction packages of the proposed 16.75-km North-South underground tunnel road project, according to sources familiar with the financial bids opened by Bengaluru Smart Infrastructure Ltd (B-SMILE), the project’s nodal agency.

Bids higher than government estimates

Sources said the Adani Group’s financial bids are significantly higher than the government’s initial cost estimates, a factor that could now require the state Cabinet’s approval before the tenders are finalised. For the first package, the conglomerate’s quote is about 24 per cent higher than the estimate, while for the second package it is around 28 per cent higher.

The Karnataka government had pegged the total cost of the tunnel road project at ₹17,698 crore. However, the Adani Group has reportedly quoted ₹22,267 crore for executing the entire project under the build-operate-transfer (BOT) model. The gap between the estimate and the quoted amount is expected to be a key point of deliberation for the government.

M Maheshwar Rao, Chief Commissioner of the Greater Bengaluru Authority (GBA) and Managing Director of B-SMILE, declined to comment on the outcome of the financial bids.

Tender process and funding structure

The tunnel road project has been proposed under the BOT model, under which the private concessionaire will construct, operate and maintain the tunnel for a specified concession period before transferring it back to the government. As per the tender conditions, around 40 per cent of the project funding will be provided by the government, while the remaining 60 per cent will be mobilised by the selected private developer.

In total, four major infrastructure companies had participated in the tender process. These included the Adani Group, Hyderabad-based Vishwa Samudra Engineering Ltd, Dilip Buildcon and Rail Vikas Nigam Ltd (RVNL).

Following the technical evaluation stage, only two bidders — the Adani Group and Vishwa Samudra Engineering — qualified for the financial round, sources said.

Disqualification of other bidders

Dilip Buildcon was disqualified during the technical scrutiny stage due to a conflict with Clause 2.2.1 (G) of the tender document. This clause disqualifies entities that have a record of collapse of a bridge, flyover or tunnel constructed by them in the past.

Meanwhile, RVNL exited the race as its joint venture partner failed to meet the technical eligibility requirements laid down in the tender. With only two bidders left in contention, the Adani Group eventually emerged as the lowest bidder for both packages, while Vishwa Samudra Engineering was ranked second, sources privy to the development told Deccan Herald.

A politically sensitive infrastructure project

The North-South underground corridor has been one of the most politically debated infrastructure proposals in the city in recent years. Senior leaders of the Bharatiya Janata Party (BJP) have publicly opposed the project, raising concerns over its alignment, cost and environmental impact.

One of the most contentious aspects of the project is the proposed alignment passing through around six acres of the historic Lalbagh Botanical Garden. Critics argue that construction activity in and around Lalbagh could damage its ecology and heritage value, while the government has maintained that mitigation measures will be taken to minimise impact.

The project has also sparked debate within policy and planning circles, with some experts questioning whether the tunnel road is the most effective solution to the city’s chronic traffic congestion.

Congress government’s urban mobility push

The tunnel road forms a key component of the Congress government’s broader plan to decongest the city’s traffic through large-scale infrastructure interventions. The government has proposed building two underground tunnel roads with a combined length of around 40 km, along with 13 new flyovers and elevated corridors across the city.

The North-South underground corridor is considered the flagship among these proposals and is the brainchild of Deputy Chief Minister D K Shivakumar, who also holds the Bengaluru Development portfolio. The government has argued that underground roads will provide faster point-to-point connectivity while reducing surface-level congestion.

Concerns from mobility experts

Urban mobility experts, however, have expressed reservations about the tunnel road project. Some have warned that the underground corridor could undermine the viability of the planned Metro Phase 3A project, whose alignment is expected to run close to the proposed tunnel.

Experts have pointed out that high-capacity public transport systems such as metro rail are more sustainable and efficient in the long run compared to road-based solutions. They caution that prioritising tunnel roads could divert resources and ridership away from mass transit systems.

Additionally, concerns have been raised about the financial feasibility of the BOT model for such a capital-intensive project, particularly given the higher-than-estimated bids.

What lies ahead

With the Adani Group emerging as the lowest bidder, the immediate next step will involve scrutiny of the financial implications by the state government. Given that the quoted project cost is substantially higher than the original estimate, officials are expected to place the matter before the state Cabinet for a final decision.

The Cabinet will have to weigh multiple factors, including cost escalation, funding commitments, political opposition and long-term mobility goals, before giving its approval. A final call on awarding the contract is expected only after these deliberations.

Conclusion

The emergence of the Adani Group as the lowest bidder marks a significant milestone for the North-South underground tunnel road project, which has been mired in debate since its conception. While the project is seen by the government as a transformative solution to traffic congestion, questions over cost, alignment and integration with public transport remain unresolved. The coming weeks are likely to be crucial in determining whether the ambitious tunnel road moves from proposal to execution.