Bengaluru tunnel road: Adani lowest bidder, but still beats government estimate by Rs 4,600 crore | Bengaluru News

Bengaluru: Adani Group has emerged as the lowest bidder for the proposed 17km tunnel road project from Silk Board to Hebbal, with a quote of Rs 22,267 crore.The bid is nearly Rs 4,600 crore higher than the govt’s estimate of Rs 17,698 crore, based on the project report prepared by Bengaluru Smart Infrastructure Ltd (B-Smile). The significantly higher bid has intensified concerns over the project’s financial viability and long-term burden on citizens. Responding to these concerns, deputy chief minister and Bengaluru development minister DK Shivakumar said the govt’s financial commitment will be capped at 40% of the project cost as estimated by the state. “Beyond that, investment has to be made by private players. That is why the project is being taken up on build-operate-transfer basis,” he said. He said he had reviewed Metro projects undertaken by BMRCL and tunnel projects in Mumbai, where costs are around Rs 1,200 crore per km. “What has been quoted for this project will have to be examined,” the DCM said.The project was tendered in two packages. Sources in Greater Bengaluru Authority (GBA) said Adani Group’s bid overshoots the govt estimate by 24% for package 1 and 28% for package 2, gaps that are likely to require cabinet-level scrutiny before any award decision is made. The Hyderabad-based Vishwa Samudra Engineering Ltd was the only other firm to qualify for the financial bidding stage. Of the four firms that initially submitted bids, Dilip Buildcon was disqualified under a tender clause barring companies with a history of bridge, flyover or tunnel collapses, while Rail Vikas Nigam Ltd withdrew after its joint venture partner failed to meet technical eligibility criteria.The opposition BJP has demanded that the govt drop the tunnel project. BJP MP from Bengaluru Central PC Mohan cautioned that major tunnelling firms had stayed away from the tender, highlighting a poor risk–reward balance under the BOT model, where private concessionaires fund 60% of the cost and recover their investment through tolls. Mohan also pointed to limited soil testing and traffic data as factors that could drive further cost escalation once construction begins.Mobility experts who have been critical of the project said the Rs 22,267-crore cost quoted could eventually increase sharply, with construction stretching over a decade. Under BOT framework, toll recovery by private concessionaires could force commuters to bear both tolls and taxes for decades.