The Karnataka Cabinet has granted in-principle administrative approval for ambitious infrastructure projects in Bengaluru, including the construction of a tunnel road, and a skydeck.

The 18.5 km twin-tube tunnel road project connects Hebbal flyover (Esteem Mall) to Silk Board Junction.

The project, with an estimated cost of Rs 12,690 crore, aims to alleviate traffic congestion in the city.

The decision follows a feasibility study by Altinac Consulting Engineering Inc., which recommended a single-tube tunnel as a cost-effective option, although the cabinet opted for the twin-tube model in line with Indian Road Congress norms and similar projects in Mumbai.

The project will be executed under the build, operate, and transfer (BOT) model, with the possibility of being implemented as a toll road under a public-private partnership (PPP) framework.

The State government has agreed to provide 40 per cent Viability Gap Funding (VAF).

If no bidders emerge for the BOT model after two tenders, the project may be undertaken by the government under the Hybrid Annuity Model (HAM) through the Engineering Procurement Contract (EPC) method, with toll revenue collection retained by the government.