BDA Fixes Monthly Rent of ₹89,700 per Acre for Hebbal Short Tunnel Land

The Bangalore Development Authority (BDA) has fixed a monthly rent of ₹89,700 per acre for the temporary use of land in Hebbal belonging to the Karnataka Veterinary, Animal and Fisheries Sciences University (KVAFSU) for the Hebbal short tunnel project. The decision came after the authority rejected the Public Works Department (PWD) rate, describing it as too high.

The newly fixed rate is twice the average of what contractors on Bangalore Metro Rail Corporation Limited (BMRCL) and K-RIDE projects paid to rent land for construction work. A BDA official stated that the PWD rate exceeded ₹89,700, prompting the authority to evaluate rents paid in other infrastructure projects to determine a more reasonable rate. The formal lease agreement with KVAFSU is yet to be executed.

In a letter sent to KVAFSU on August 10, the BDA stated that adopting the PWD Schedule of Rates would lead to a substantially higher lease rent, create an undue financial burden on the project, and result in expenditures not accounted for in the approved project cost.

To arrive at the figure, the BDA reviewed four separate agreements entered into by BMRCL and K-RIDE contractors with private landowners. The rental rates in those agreements ranged from ₹37,800 to ₹55,725 per acre each month, producing an average of ₹44,850. The BDA then doubled this average to set the rent at ₹89,700 per acre per month. While the letter did not provide a specific rationale for doubling the average, an official indicated that the authority aimed to strike a balance between the PWD rate and the private lease benchmarks.

The proposed transaction is between two state-run bodies, with the BDA executing the tunnel and KVAFSU providing the land. The university land will be used on a temporary basis to establish a project office and other construction-related facilities.

The expense adds to prior cost concerns surrounding the Hebbal short tunnel. When the project was initially planned, the Finance Department termed it an expensive quick-fix, questioning whether a surface road could offer relief at a lower cost. The Urban Development Department later noted that an underground alignment was chosen after KVAFSU refused to part with land for a surface road, though questions were raised regarding whether that refusal justified the cost of a tunnel.