The Adani group has emerged as the lowest bidder for both packages of the 16.75-km tunnel road project in Bengaluru, which connects Hebbal and Silk Board junction, but the bids are higher than the government’s estimated quote.
According to sources, as per the bids opened by the Bengaluru Smart Infrastructure Ltd (B-SMILE), which is overseeing the project, Adani group has quoted Rs 22,267 crore against the government estimate of Rs 17,698 crore. The group’s bid is approximately 24 per cent higher for the first package and 28 per cent higher for the second, raising concerns that it may require the approval of the state Cabinet before proceeding.
Asked about the matter, Karnataka Deputy Chief Minister and Bengaluru Development Minister D K Shivakumar said on Monday, “I haven’t received complete information on this. I can’t comment on it until bids are officially revealed.”
The project, structured under a build-operate-transfer model, envisions 40 per cent government funding with the remaining investment coming from private concessionaires. Of the four infrastructure companies initially participating in tenders, only two advanced to the financial round following technical evaluation: Adani Group and Hyderabad-based Vishwa Samudra Engineering Ltd.
The government has estimated the first package to cost Rs 8,770 crore (Esteem Mall, Hebbal to Seshadri Road) while Adani group has reportedly placed a bid of Rs 10,867 crore. Vishwa Samudra has placed a bid of Rs 12,432 crore. In the second package (Seshadri Road to St John’s Hospital, Madiwala), the government estimates stood at Rs 8,928 crore, while Adani group bid is Rs 11,400 crore and Vishwa Samudra’s bid is Rs 13,042 crore.
On the lowest bid amount being much higher than the original estimates, Shivakumar said, “The government is not paying any money to the bidder. The bidder has to invest in the project and we will give them only 40 per cent of our estimates.”
Among other participants in the tender, Dilip Buildcon faced disqualification due to regulations barring firms associated with collapsed bridges or tunnels, while Rail Vikas Nigam Ltd was eliminated after its joint venture partner failed to meet technical requirements.
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Once the tunnel road, which the Opposition considers to be Shivakumar’s brainchild, comes up, commuters will have to pay a toll to use it. The proposal, hence, faces substantial criticism and political resistance. Senior BJP leaders particularly oppose its alignment, which necessitates acquiring six acres of the historic Lalbagh Botanical Garden.
Urban mobility experts have raised additional concerns about potential conflicts between the tunnel corridor and Namma Metro’s Phase 3A alignment, potentially jeopardising Metro expansion plans.