Bengaluru: A proposal in the DPR for Bengaluru’s planned 5.2km elevated corridor between Old Madras Road and Hosur Road to recover project costs of Rs 1,300 crore through a small incremental property tax has sparked a clarification from Bengaluru Smart Infrastructure Ltd (B-Smile), which insists the project will be funded by state govt.B-Smile technical director BS Prahallad told TOI that the projects will be funded by state govt. “Value capture financing will not be used to fund these projects. It is an entirely different concept altogether. It pertains to the appreciation of property values through infrastructure development,” he said.However, the detailed project report of the elevated corridor between Old Madras Road and Hosur Road via Indiranagar suggests integration of property tax for funding the project. Under the section titled ‘Implementation Approach’, the DPR states: “The Bruhat Bengaluru Mahanagara Palike (BBMP) already collects property tax annually. A modest levy earmarked for infrastructure recovery can be incorporated into this existing framework. Properties near the corridor are expected to appreciate in value due to improved accessibility. A small incremental tax can capture part of this value gain to fund the project. Clear communication that the levy is dedicated to infrastructure repayment will build public trust and acceptance”.In a letter, Prahallad called media reports on this inaccurate and said that the indications in the DPR are illustrative, having no statutory force. He also added that the annual property tax remains entirely unaffected by draft VCF proposals which are currently under deliberation.
