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Kumaraswamy urges Karnataka government to take over NICE project and halt toll collection

#Law & Policy#Infrastructure#India#Karnataka#Bangalore
Synopsis

Union Minister H D Kumaraswamy has urged Karnataka Chief Minister D K Shivakumar to take over the Bengaluru-Mysuru Infrastructure Corridor Project (BMICP), implemented by Nandi Infrastructure Corridor Enterprises (NICE), and immediately stop toll collection on the roads. In a seven-page letter sent to Shivakumar on August 15, Kumaraswamy cited observations made by the Karnataka High Court regarding alleged irregularities in the project’s implementation and sought corrective action by the state government. NICE currently operates a 41-kilometre peripheral road and a 10-kilometre link road in Bengaluru, on which tolls are collected. Kumaraswamy has also called for legislation to formally take over the project, citing alleged violations of the Framework Agreement and Project Technical Agreement. The Chief Minister said the government would examine the matter and act in accordance with the law.

Union Minister H D Kumaraswamy has asked Karnataka Chief Minister D K Shivakumar to take over the Bengaluru-Mysuru Infrastructure Corridor Project (BMICP), popularly known as the NICE project, and immediately stop toll collection on the roads operated by its concessionaire. He made the demands in a seven-page letter to the Chief Minister on August 15, citing recent observations by the Karnataka High Court on alleged irregularities in the implementation of the project. 
The BMICP is being implemented by Nandi Infrastructure Corridor Enterprises (NICE), which operates a 41-kilometre peripheral road and a 10-kilometre link road in Bengaluru and collects toll from users. Kumaraswamy has described the toll collection as unauthorised and sought its immediate suspension. 
In his letter, Kumaraswamy referred to a Karnataka High Court Division Bench judgment dated July 29, 2026, concerning land acquisition and the implementation of the BMICP. He cited the court's observations while seeking a review of the project and corrective measures by the state government. 
Kumaraswamy has alleged that the project promoters violated provisions of the Framework Agreement (FWA) and Project Technical Agreement. His concerns include the use of acquired land, toll collection and the construction of project infrastructure. He has also called for the government to reclaim surplus land and withdraw notifications relating to land acquired outside the scope of the Framework Agreement. 
The Union minister has further sought action concerning farmers whose land was acquired for the project. He has pointed to allegations that compensation remained unpaid to some affected landowners and urged the state government to address the issue in accordance with directions and observations from the courts and government committees. 
Kumaraswamy has asked the Chief Minister to introduce legislation to formally take over the NICE project. He said the proposed state intervention was warranted by what he described as violations of the agreements governing the project and the findings of the Karnataka High Court, the Supreme Court, a legislative committee and a Cabinet sub-committee. 
The original NICE project was conceived as an infrastructure corridor connecting Bengaluru and Mysuru. Its planned components included an expressway, peripheral roads, link roads and five townships. The project has remained subject to disputes concerning land acquisition, implementation and toll collection. 
Responding to questions from reporters, Shivakumar said he had not yet examined Kumaraswamy's letter. He indicated that the state government would review the matter and take whatever action was required within the framework of the law. 
The latest demand comes amid continuing scrutiny of the BMICP and the operation of NICE roads in Bengaluru. Kumaraswamy's proposal would require the state government to consider both the legal position surrounding the existing agreements and the implications of taking control of the privately implemented infrastructure project. 
Source - PTI

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