Bengaluru Skydeck cost estimate rises to ₹800 crore from ₹500 crore

An artist’s impression of the proposed skydeck in Bengaluru. The proposed skydeck is envisaged as more than an observation tower, with facilities including a glass-floor viewing area and digital interactive experience centre.

With preparatory work gathering pace for the proposed 250-metre-high Bengaluru Skydeck, the project’s tentative cost estimate has risen to ₹800 crore from the initial estimate of ₹500 crore. The project, one of Chief Minister D.K. Shivakumar’s pet projects, is expected to move to the next stage, with the Bangalore Development Authority (BDA) likely to invite Expressions of Interest (EoI) from prospective investors and developers in the coming two days.

The project, which received the Cabinet approval in August 2024 when Siddaramaiah was Chief Minister and Mr. Shivakumar was his deputy, was initially estimated to cost up to ₹500 crore. The estimate was subsequently revised to ₹600 crore. The Hindu has learnt that the latest BDA document puts the tentative broad-order cost at around ₹800 crore. Sources in the BDA, however, argued that this is only a preliminary estimate based on the initial concept and proposed facilities, and neither an approved estimate nor the final project cost. The final cost will depend on the tower’s design and height, built-up area, facilities, and technical requirements.

The project is proposed to be implemented through a public-private partnership (PPP), primarily under a Design-Build-Finance-Operate-Transfer (DBFOT) arrangement, or another suitable PPP structure.

The EoI is intended to assess prospective investors’ capacity and commercial interest, as well as the project’s technical and financial feasibility and possible revenue- and profit-sharing models, officials said, pointing out that participation in the EoI will not confer any right or assurance of being awarded the project. The developer or concessionaire will be selected later through a competitive Request for Qualification (RFQ) and Request for Proposal (RFP) process.

The BDA has appointed KPMG Advisory Services Private Limited as Transaction Advisor to assess the project’s feasibility, recommend the PPP structure, and identify potential investors.

The proposed skydeck is envisaged as more than an observation tower, with facilities including a glass-floor viewing area, Bengaluru Tourism and Visitor Centre and digital interactive experience centre, besides other facilities. The final mix of facilities will depend on the feasibility assessment and project design.

Under the proposed arrangement, the private investor or concessionaire is expected to mobilise the capital required for construction and operation, while the BDA will make the identified land available for the project. The BDA does not envisage making a direct capital investment towards construction at the present stage. The concession period, revenue-sharing arrangement, and allocation of risks are among the terms yet to be finalised.

Following the Cabinet approval, Mr. Shivakumar, who was then Bengaluru Development Minister, had explored several locations for the project, including sites near Baiyappanahalli, Hemmigepura and Jnanabharathi. These were, however, dropped due to feasibility issues. The BDA later considered a site near Kommaghatta, but land acquisition requirements and technical challenges posed hurdles.

The currently identified site is near S.M. Krishna Main Road, which is set to form part of the Bengaluru Business Corridor (BBC). It is also a few kilometres from the Challaghatta Metro station, providing connectivity to the proposed development.