Bengaluru: With land acquisition emerging as the biggest roadblock to the long-delayed Hoodi Flyover near Whitefield, the Bengaluru East City Corporation (BECC) is exploring the land value capture (LVC) model to unlock stalled infrastructure work in one of the city’s fastest-growing corridors.At a review meeting chaired by Lokhande Snehal Sudhakar, additional commissioner (development), officials discussed land acquisition using the LVC model, which seeks to recover a portion of the increase in land value generated by public infrastructure investments.
According to officials, land acquisition emerged as the single biggest bottleneck for the Hoodi Flyover project, which is being discussed since 2014. Several landowners whose properties are affected by the project 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.Officials explained projects such as flyovers, Metro corridors, road widening and rail infrastructure significantly enhance surrounding land values, and LVC allows govt to channel part of this appreciation back into public development.BECC officials pointed out that land values within its jurisdiction rose sharply due to 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 became financially and administratively challenging. Sudhakar said, “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.“However, the additional commissioner flagged several challenges, including 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 was directed to submit a detailed report addressing these concerns.Appealing to landowners and residents, BECC officials said several states successfully implemented infrastructure projects using LVC, avoiding long delays. 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.
