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**Summary:**

Bengaluru is undergoing significant changes in its governance and infrastructure development under the leadership of Deputy Chief Minister D.K. Shivakumar. The Greater Bengaluru Governance Act, 2024, aimed at restructuring civic administration with a new authority, has been enacted. Big infrastructure projects like tunnel roads and the Peripheral Ring Road are planned, largely reliant on loans due to state fiscal constraints. However, these projects face challenges, including delayed loan approvals and potential legal challenges to the Governance Act. The city also faces criticism for the lack of elected civic council for the past five years.

**News Article:**

**Bengaluru Poised for Major Overhaul in Governance and Infrastructure Despite Hurdles**

**Bengaluru, May 20, 2025** – Bengaluru is on the cusp of significant transformation with the enactment of the Greater Bengaluru Governance Act, 2024, aimed at restructuring civic administration. Spearheaded by Deputy Chief Minister D.K. Shivakumar, who also oversees Bengaluru Development, the Act establishes a Greater Bengaluru Authority (GBA) to coordinate governance across various city entities.

This reform, effective from May 15th, hopes to solve the “governance deficit” by bringing parastatals under one umbrella. Despite this ambitious move, the GBA is yet to be officially constituted. The city’s administration is expected to transition to the new system this year. There are potential legal challenges from citizen groups concerned about the 74th amendment. Also, criticism mounts over the delayed civic polls as the city approaches five years without an elected council.

Adding to the city’s transformation are grand infrastructure projects. Tunnel roads, flyovers, and the Peripheral Ring Road (PRR) are planned, estimated at over ₹1 lakh crore. However, funding these projects relies heavily on loans.

The government is acting as guarantor for a ₹27,000 crore loan for the PRR project and a ₹19,000 crore loan for the tunnel roads. HUDCO has agreed to provide a ₹27,000 crore loan for the PRR, and discussions are ongoing with lenders for tunnel road funding. The World Bank is also providing a ₹3,500 crore loan for climate resilience measures. This would bring the city’s borrowing for infrastructure to around ₹50,000 crore.

A skydeck project has been put on hold until the location of a second airport is finalized. Despite ambitious plans, these large-scale initiatives face delays.

The last two years have shown difficulties in attracting private funding for projects like the PRR. Preparations are underway to begin work on tunnel roads and the PRR soon.

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