Wed Nov 20 17:21:44 UTC 2024: ## Bengaluru to Secure ₹27,000 Crore Loan for Peripheral Ring Road Project
**Bengaluru, November 20, 2024** – The Bangalore Development Authority (BDA) will secure a ₹27,000 crore loan from the Housing and Urban Development Corporation Limited (HUDCO) to fund the long-awaited 73-km Peripheral Ring Road (PRR) project. This follows two unsuccessful attempts to attract private investment through global tenders.
The decision was made at a meeting chaired by Deputy Chief Minister and Bengaluru Development Minister D.K. Shivakumar. The loan will carry a 9% interest rate, although the BDA plans to negotiate a lower rate with HUDCO. The project’s total estimated cost is ₹27,000 crore, meaning HUDCO will fully finance the ambitious undertaking.
While initial plans involved securing loans from multiple agencies, including the Japan International Cooperation Agency (JICA), those plans stalled due to escalating land acquisition costs. The BDA will now handle land acquisition directly, compensating farmers based on near-market value under the BDA Act of 1976, rather than the 2013 Land Acquisition Act, as farmers had demanded. The BDA will engage in direct negotiations with affected farmers.
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