Bengaluru Explores Land Value Capture Model to Unlock Stalled Hoodi Flyover Project
In Bengaluru, the long-delayed Hoodi Flyover project near Whitefield has encountered significant roadblocks, with land acquisition emerging as the primary obstacle. To address this challenge, the Bengaluru East City Corporation (BECC) is actively exploring the Land Value Capture (LVC) model as a potential solution to unlock stalled infrastructure work in one of the city's fastest-growing corridors.
Land Acquisition Emerges as Major Bottleneck
According to officials, land acquisition has been identified as the single biggest bottleneck for the Hoodi Flyover project, which has been under discussion since 2014. Several landowners whose properties are affected by the project have refused to accept Transferable Development Rights (TDR), instead insisting on cash compensation. However, existing rules and regulations do not permit cash payouts for such acquisitions, resulting in prolonged delays that have hampered progress on this critical infrastructure initiative.
Understanding the Land Value Capture Model
At a recent review meeting chaired by Lokhande Snehal Sudhakar, additional commissioner (development), officials discussed land acquisition using the LVC model. This innovative approach seeks to recover a portion of the increase in land value generated by public infrastructure investments. Officials explained that projects such as flyovers, Metro corridors, road widening, and rail infrastructure significantly enhance surrounding land values, and LVC allows the government to channel part of this appreciation back into public development.
BECC officials pointed out that land values within their jurisdiction have risen sharply due to multiple factors including rapid urbanisation, expansion of Metro lines, the proposed Peripheral Ring Road, suburban rail projects, IT corridors, and Transit-Oriented Development (TOD) zones. In such a scenario, traditional land acquisition methods have become financially and administratively challenging, necessitating alternative approaches like LVC.
Proposed Approach Through Land Pooling
Sudhakar elaborated on the proposed approach, stating, "Under the proposed approach — particularly through land pooling — landowners contribute a portion of their land for infrastructure development. After the project is completed, the remaining land is returned with improved access and infrastructure, often resulting in multiple-fold appreciation in value. We believe this model is well-suited to the fast-growing eastern parts of Bengaluru and can support more planned and balanced urban growth."
Challenges and Implementation Hurdles
However, the additional commissioner flagged several challenges that need to be addressed for successful implementation. These include accurate land valuation in rapidly developing areas, the need for legal clarity and a uniform regulatory framework, inter-agency coordination, and public acceptance of the model. The town planning department has been directed to submit a detailed report addressing these concerns to ensure a smooth transition to the LVC model.
Appeal for Public Cooperation
Appealing to landowners and residents, BECC officials highlighted that several states have successfully implemented infrastructure projects using LVC, avoiding long delays that typically plague such initiatives. They urged public cooperation to make the Hoodi flyover the first such LVC-backed project in the corporation's limits, enabling faster and more transparent execution in the larger public interest. This collaborative approach could set a precedent for future infrastructure development in Bengaluru's rapidly expanding urban landscape.
