Updated 23 October 2026. We re-read the Deccan Herald Cabinet-agenda report and The Hans India's August report on the bid. The route, exits and earlier controversies are in our main guide, Bangalore Tunnel Road Project Status 2026: Route, Toll, Date; this update covers only the negotiation step and what it changes for buyers.

What did the Cabinet decide in October 2026?

  • A committee will be constituted to negotiate with Adani Enterprises over the cost of the 16.75-km tunnel road, after the company emerged as the successful bidder for both packages (Deccan Herald, 16 October 2026).
  • The negotiation covers the tender rates of the two packages connecting Hebbal and Silk Board (Deccan Herald, citing the Cabinet agenda).
  • The project stays on a Build-Own-Operate-Transfer (BOOT) model with viability gap funding from the state (Deccan Herald). The Hans India reported the split as 40% government VGF and 60% private investment (24 August 2026).

How far apart are the estimate and the bid?

The figures differ slightly by report. The Hans India put the estimate at ₹17,698 crore and Adani's bid at ₹22,267 crore, a gap of about ₹4,569 crore (24 August 2026). Deccan Herald gives the initial estimate as ₹17,780 crore and the bids as approximately ₹22,000 crore (16 October 2026). Either way, the bid is roughly a quarter above the estimate, which is why the state has chosen to negotiate rather than sign.

Only two firms cleared technical evaluation, Adani Group and Hyderabad-based Viswa Samudra Engineering (The Hans India, 24 August 2026). In August the Cabinet's options were to accept, negotiate or re-tender; October's decision picks the middle path.

When could construction start?

No date has been given. The sequence still to come is: the committee's negotiation, a Cabinet decision on the negotiated price, the award, and then the concession agreement. The project also faces a heritage question: a Geological Survey of India expert committee flagged risks to the Lalbagh rock and Kempegowda tower from a tunnel boring shaft planned nearby and recommended an independent review of its location (Deccan Herald, as reported in September 2026). Treat any start before mid-2027 as unconfirmed.

Do not confuse it with the Hebbal short tunnel

The Hebbal short tunnel is a separate, roughly 2-km BDA project to bypass the Hebbal flyover. For that project, the Greater Bengaluru Authority received more than 1,500 objections to felling 1,128 trees, and the National Green Tribunal has restrained the BDA from felling trees until its next hearing on 15 December (The News Minute, 21 October 2026). Our separate guide: Hebbal Tunnel Project 2026: Route, Cost, Trees and Status.

What it means for buyers in Hebbal and south-central Bengaluru

Homes near the tunnel road's northern end on Property Point

Selected projects on Property Point's listings (developer information, October 2026). Prices change often; confirm with the developer and K-RERA.