HUDCO agrees to give loan for Bengaluru Business Corridor at 9% interest

 The 73-km Bengaluru Business Corridor (BBC), which will form a semi-circle on the outskirts of Bengaluru, is set to be funded by Housing and Urban Development Corporation (Hudco), a public sector undertaking, which agreed to finance the entire project cost of Rs 27,000 crore through a long-term loan at an interest rate just under 9 percent per annum. The state government has reportedly accepted the offer.

The estimated cost of the 73 km PRR project is Rs 27,000 crore. This means the HUDCO will be fully funding the ambitious pending project. Earlier there was a plan to borrow loans from multiple agencies including HUDCO. 

Japan International Cooperation Agency (JICA) had earlier approved a loan of over Rs 3000 Crore for the road works. However, that did not take off as land acquisition costs ballooned and the state government did not have the money to fund the same.

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The official said the BDA will be acquiring land and compensation will be given based on near market value. However, the compensation price will be decided under the BDA Act, 1976, and not The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013, as is being demanded by farmers. The BDA will directly negotiate with farmers in this connection, the official said.

The 73-km stretch will be 50 metres wide but the government will acquire 100 metres of notified land to fund the project. On Wednesday, Deputy CM D K Shivakumar reviewed the project with top bureaucrats, which is about two months after the state government agreed to stand as guarantor to fund the project.

 

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