Bengaluru Infrastructure Boost: New SPV to Head Key Projects

The Karnataka government gave the go-ahead to the creation of Bengaluru Smart Infrastructure Limited (B-SMILE), a new special-purpose vehicle that will lead the city’s megascale infrastructure projects. The SPV will be operational from an initial corpus of ₹7,000 crore, an amount guaranteed in the state budget.

B-SMILE’s main mandate is to oversee major development projects in Bengaluru, including government-sponsored projects as well as those with private-sector investment. The government will have a 90% shareholding in the company, with the Bruhat Bengaluru Mahanagara Palike (BBMP) taking the remaining 10%. The SPV will be headquartered at Vasanthnagar, only 4 km from BBMP’s office.

Some of the significant projects the SPV will undertake include the laying of 40 km of road tunnels, a city-level flyover and underpass network, new roads within stormwater drain buffer zones, and a planned 250-meter sky deck. Such projects form part of Deputy Chief Minister D.K. Shivakumar’s plan to deal with Bengaluru’s acute traffic congestion and mobility issues. With the establishment of B-SMILE, BBMP is going to transfer control of various large-scale infrastructure projects.

The jurisdiction of the SPV will cover the whole Bengaluru Urban district, and it will be able to work with or subsidize other organizations. This may enable B-SMILE to circumvent some provisions of the Karnataka Transparency in Public Procurements Act. The 11-member board of the company will consist of a full-time CEO (an IAS officer), the Bengaluru mayor, the Bangalore Development Authority commissioner and the Bengaluru Water Supply and Sewerage Board commissioner, BBMP’s engineer-in-chief, and three experts from the private sector.

The officials have stated that this step will simplify the deployment of long-term infrastructure solutions. While BBMP will remain in charge of day-to-day road work, B-SMILE will attend to high-impact projects to enhance Bengaluru’s overall infrastructure.

The approval from the Urban Development Department on May 2 for the incorporation of the SPV has been a huge leap towards the infrastructure transformation of the city. A deviation in the Memorandum of Association has confused as it has referred to the SPV by turns as Bengaluru Smart Infrastructure Ltd and Bengaluru Road Infrastructure Ltd.