Citizens May Have To Foot Rs 1,300 Crore Bengaluru Flyover Bill
GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims + Mains·
Why in news
The Bengaluru government is considering a 'Value Capture Financing' (VCF) model to fund a Rs 1,300-crore elevated corridor, shifting from toll-based to property tax-based recovery.
Background
The project connects Swami Vivekananda Metro Station to Silk Board Junction in Bengaluru. The Detailed Project Report (DPR) suggests VCF because fragmented alignment and low tollable traffic volumes make traditional toll collection unfeasible.
Facts for Prelims
- FactProject cost for the Bengaluru elevated corridor is estimated at Rs 1,300 crore.
- PlaceThe corridor connects Swami Vivekananda Metro Station to Silk Board Junction in Bengaluru.
- S&TValue Capture Financing (VCF) is a model where infrastructure costs are recovered from the increase in land/property value.
For Mains
Q. Discuss the viability of Value Capture Financing (VCF) as a sustainable model for urban infrastructure development in rapidly expanding Indian metropolitan cities.
Keywords: Value Capture Financing · Urban Infrastructure · Fiscal Federalism · Property Tax · Public-Private Partnership · Urban Planning
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