Karnataka CM Shivakumar's Adani Tunnel Road Project Faces Political Test

Bengaluru: Approving Adani group's bid for his pet twin tunnel road project in Bengaluru will be DK Shivakumar's first major political test as Karnataka chief minister, given Congress leader Rahul Gandhi's hostility towards the billionaire.

Shivakumar, as minister in-charge of Bengaluru development, has always asserted that the 17-km tunnel road between Hebbal and Silk Board junction is the only viable option to reduce traffic congestion in the city. Expanding the roads isn't possible, he has maintained.

Adani Enterprises Ltd (AEL), the lowest bidder for the PPP initiative, is carrying out a survey and soil testing at the project site, even as its bid is pending before Shivakumar for the first level of clearance.

The road, estimated to cost ₹17,698 crore, is Shivakumar's dream project through which he plans to leave his mark on Bengaluru's infrastructure map. Despite strong resistance from citizen groups and the Opposition BJP over concerns of its limited utility, he is strongly pushing the project. If the initiative goes on stream, the road will collect one of India's steepest tolls, say reports.

The Adani bid is higher than the state government's estimates and requires Cabinet approval for it to move forward. But Gandhi's green signal is far more crucial.

Gandhi has often attacked the billionaire, labelling him a major beneficiary of his friendship with Prime Minister Narendra Modi. It is in this context that sections of political analysts are wondering if the AICC leader's perception would influence the state government's decision.

Citing precedents, some Congressmen believe that the chief minister-designate might navigate through the situation. AICC may allow the party-ruled states to do business with the infrastructure giant while keeping its public stand or views on the group intact.

The Ahmedabad-headquartered infrastructure giant is pursuing a spate of investments in Congress-ruled states, including in Kerala and Telangana and the Opposition-ruled Tamil Nadu, pledging long-term commitment.

At the World Economic Forum in Davos in 2024, the group announced investments of over ₹12,400 crore in Telangana. This was on top of ₹10,000 crore already invested in the state.

The group has said it would invest ₹42,700 crore in Tamil Nadu. The UDF regime in Kerala is banking on the infrastructure behemoth to grow its Vizhinjam port into a strategic logistics hub.

When the news emerged last year that AEL is a serious contender for the road project, it sparked an internal chatter in the Congress circles. On the AEL quote being far higher than the government estimate, Shivakumar had clarified that the state would contribute only 40% of its own projected costs to the successful bidder.