Property owners along the proposed 11-km elevated corridor may have to contribute towards the project’s cost through a special levy linked to property tax, according to the Detailed Project Report (DPR) prepared for the project.

The proposed elevated corridor, estimated to cost around Rs 1,300 crore, will pass through key localities including Indiranagar, Domlur, Koramangala and Madiwala, aiming to ease traffic congestion on one of Bengaluru’s busiest routes.

DPR rules out toll collection

The DPR, prepared for Bengaluru Smart Infrastructure Limited (B-SMILE), states that toll collection is not a practical option because of the corridor’s fragmented design, multiple entry and exit ramps, and mixed urban traffic.

Instead, it proposes a Value Capture Financing (VCF) model, under which property owners within the corridor’s “influence zone” would contribute through an additional levy incorporated into the existing property tax system. The rationale is that improved connectivity is expected to increase nearby property values, allowing a portion of that gain to help finance the infrastructure project.

No final decision yet

B-SMILE Managing Director and Greater Bengaluru Authority Chief Commissioner Maheshwar Rao clarified that no final decision has been taken on adopting the levy model.

He said the Karnataka government’s policy is to develop flyovers longer than 10 km under a Build-Operate-Transfer (BOT) model with tolling. However, since toll collection is considered unviable for this corridor, authorities will examine value-capture financing if they do not receive a viable BOT bid.

Residents seek consultation

The proposal has already drawn concern from some resident groups, particularly in Indiranagar, where associations have sought public consultation before the project moves ahead. Residents have also expressed worries over possible tree loss and the impact of prolonged construction on one of the city’s busiest neighbourhoods.

Authorities have not yet announced whether the proposed levy will be implemented, and further discussions on the funding model are expected before the project is finalised.