Adani Meets Karnataka CM DK Shivakumar as Bengaluru Tunnel Road Project Awaits Final Nod

Adani Group chairman Gautam Adani met Karnataka Chief Minister D.K. Shivakumar in Bengaluru, drawing attention amid the pending decision on the proposed Hebbal-Silk Board tunnel road project. Adani met the Karnataka deputy chief minister at his residence on Sunday, August 23. The meeting came shortly after Adani visited the Art of Living International Centre. Neither side has publicly disclosed details of the discussion.

The timing of the meeting has attracted interest as Adani Enterprises Ltd. has emerged as the lowest bidder (L1) for the ambitious tunnel road project, but the Karnataka government is yet to give its final approval to the tender. he proposed tunnel corridor is planned to stretch for around 16.75 km between Hebbal and Central Silk Board, providing an alternative north-south route through Bengaluru. The project is intended to ease pressure on some of the city's busiest roads and address persistent traffic congestion.

According to reports, the government's estimated project cost is around ₹17,698 crore, while Adani Enterprises quoted approximately ₹22,267 crore. The difference of more than ₹4,500 crore is expected to be a key consideration as the government evaluates the bid. The project is proposed under a Build-Operate-Transfer (BOT) model. Under the planned structure, the government would provide viability gap funding, while the private concessionaire would finance the remaining portion of the project.

The Karnataka government is expected to examine the financial implications, technical aspects and contractual conditions before deciding whether to proceed with the current bid or explore other options. The meeting has also triggered a political exchange in the state. BJP leader and Leader of Opposition R. Ashoka questioned the Congress government's engagement with the Adani Group, pointing to the political criticism surrounding the conglomerate at the national level.

For the state government, the tunnel project remains an important component of its efforts to improve Bengaluru's transport infrastructure. However, its high projected cost and the gap between the government's estimate and the L1 bid could make the final decision particularly significant. With the tender still awaiting approval, attention is now focused on whether the Karnataka government will clear Adani Enterprises' bid, seek changes to the financial terms, or consider reopening the bidding process.

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