(MENAFN- Live Mint) The Karnataka cabinet on Thursday approved the Peripheral Ring Road project and decided to rename it the 'Bengaluru Business Corridor' (BBC).

After the meeting, Deputy Chief Minister D. K. Shivakumar informed reporters that although notifications for the 117-km stretch from Tumakuru to Electronic City had been issued earlier, no concrete decisions had been made until now, as reported by PTI.

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"Previous governments wanted to drop it. Now an alternative road is needed. We thought no road will be denotified," Shivakumar, who holds Bengaluru development portfolio, said.

The Deputy CM said earlier there was no provision for compensation, but the government has taken ways to give compensation to the land losers.

Bengaluru Business Corridor

The notification is for 100-metre road, but it will only be 65-metre wide. The remaining 35 metres will be given back to the land losers to carry out commercial activities.

"Thirty five per cent road will be given back to farmers as compensation. It has value. If someone wants for residential purpose then we will give 40 per cent," Shivakumar said.

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There will also be provision for cash compensation up to 20 guntas of land, which is half an acre.

Shivakumar said those who want Floor Area Ratio (FAR) instead of land compensation, will provided the same so that they can utilise the area adjacent to the FAR land.

Also, there will be provision to give compensation in the form of Transferrable Development Rights.

"We are ready to give two times TDR or we will give alternative Bangalore Development Authority land," the Deputy CM said.

"If someone does not want to take money then we will acquire the land and deposit the amount in the court," he clarified.

Project cost is ₹27,000 crore, 117 Km new road

According to Shivakumar, the road will be tolled. It will also have a service road.

The project cost is about ₹27,000 crore and the government will take loan for it.

"It's a new chapter in Benglauru. We are building 117 km new road," Shivakumar said.

He also clarified that the state government will not denotify any land.

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Following the new compensation policy, the project cost may reduce by ₹10,000 crore, the Deputy CM said, adding the project may require 1,800 acres of land in the north side of the city.

"This project will be completed within two years by the BDA. The TDR value will be given as per the BBMP rules, which is beneficial for the land losers. I have asked officers to create TDR exchange system," Shivakumar said.

(With inputs from PTI)

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