BENGALURU: The state government will impose a betterment tax and a 1% stamp duty cess on properties near the 117km-long Bengaluru Business Corridor (BBC) to recover project costs.
The Bangalore Development Authority (BDA) will oversee the complete construction, with funds collected going towards repaying a Rs 27,000-crore loan from HUDCO. Documents from TOI indicate that the government expects the BBC to elevate land values in the vicinity, therefore, a 1,000-meter impact zone will be established for taxation purposes.
“Given that the project’s influence will be more pronounced within the first 500 meters from the road, a betterment levy in accordance with the BDA Act may be applied on properties up to 500 meters from the road’s edge,” according to the urban development department’s proposal.
The government is also suggesting a 1% cess on stamp duty and registration fees for transactions conducted within 1km of the impact zone on either side of the corridor. Funds collected will be managed by the stamps and registration department and directed to a designated bank account for the BBC.
A third revenue-generation strategy involves transit-oriented development (ToD), where the BDA will manage properties with well-planned rest areas and mixed-use developments at strategic junctions. Selections of land parcels between 50 to 100 acres, located 500m from road intersections, can be set aside for such developments, as suggested by the UDD.
The toll revenue is anticipated to generate Rs 7,000 crore to finance the roadway, while these additional revenue streams will assist the BDA in covering interest and other associated costs.
The HUDCO loan of Rs 27,000 crore carries a 9% interest rate, with total land acquisition expected to rise to 2,600 acres for the initial phase, stretching 73km from Tumakuru Road to Electronics City.
BBC Chairman LK Atheeq mentioned to TOI that he is focused on facilitating a smooth land acquisition process for the project. “The cabinet has approved multiple options for farmers. Our goal is to ensure that they receive fair compensation without hassle. We aim to finalize land acquisition within four months and will then invite construction tenders,” he stated.
