Bengaluru May Introduce Property Levy to Fund Elevated Corridor Network
A new funding proposal suggests imposing a special property-based levy in areas benefiting from Bengaluru's upcoming elevated corridor projects instead of collecting toll charges from road users.
A fresh financing proposal has been put forward to support Bengaluru’s ambitious elevated corridor programme. Instead of relying on toll collection, planners have recommended recovering part of the project cost through an additional levy on properties located in areas expected to benefit from the new transport infrastructure.
According to the project report, improved road connectivity is likely to increase land and property values along the proposed corridors. Officials believe that property owners who gain from this appreciation could contribute towards the infrastructure investment through a dedicated surcharge linked to the existing property tax system.
The proposal notes that toll plazas are not considered practical because the elevated corridors will include multiple entry and exit ramps, existing flyovers and connecting roads. This design would make toll collection difficult while generating limited revenue compared to operational costs.
To overcome this challenge, the report recommends adopting the Value Capture Financing model, under which a special cess or levy could be imposed on properties within the corridor’s influence zone. The revenue generated would provide a stable source of funding for the project over time.
The Bengaluru Smart Infrastructure Limited (B-SMILE) initiative includes plans for 11 elevated corridors covering about 126 kilometres, along with nine flyovers, at an estimated cost of ₹13,262 crore. The proposal is currently part of the Detailed Project Report, and any tax-related changes will require government approval before implementation.
