Bengaluru Smart Infrastructure Limited (B-SMILE), the recently formed special purpose vehicle, is all set to call global tenders for the North-South twin tunnel corridor between Hebbal and Silk Board. This follows the approval for a Build, Own, Operate and Transfer (BOOT) model with 40% Viability Gap Funding (VGF) from the government to be adopted to build tunnel roads in the city on June 5.
If everything goes according to plan, the twin tunnel roads will be open to the public by 2029-30 and the toll on these roads is estimated to cost ₹19/km and will be tolled by the companies that invest and build these roads for the next 30 years.
This corridor will be 16.74 km long and is expected to cost ₹17,780 crore. The VGF for this corridor will be ₹9,303 crore. The State Cabinet has already agreed to stand as a guarantor for a loan of ₹19,000 crore towards VGF for North-South and East-West tunnel roads. B-SMILE is in talks with lending agencies including Housing and Urban Development Corporation (HUDCO), a Government of India undertaking, which is also funding the Peripheral Ring Road (PRR).
Work to be split into two packages
With the past experience of PRR estimated to cost ₹27,000 crore not attracting any bidders in multiple global tenders, B-SMILE has decided to split the North-South twin tunnel corridor into two packages of roughly around 8.4 km each - North package from Hebbal to Race Course Road and South package from Race Course Road to Silk Board.
