The Government of Karnataka and Bangalore Metro Rail Corporation Limited are exploring ways to offset the heavy economic burden of expanding the metro rail transit network in Bengaluru. Land value capture (LVC) is a public financing strategy that can recover a portion of the real estate value that development along the metro corridor generates for private property owners. Deployed effectively, LVC can help fund the growth of mass transit and allied infrastructure. Several LVC mechanisms are under consideration in Bengaluru, but are yet to be implemented. Inherent shortcomings in planning, policy, and institutional frameworks prevent the market from optimizing the benefits of transit-oriented development (TOD), which in turn negatively impacts LVC. In this practice note, we first evaluate and assess the potential for TOD and LVC to evolve in tandem with specific reference to the Bengaluru metro and, second, posit strategies and recommendations to reorient policies to leverage TOD as an opportunity for LVC, and vice versa. Our learnings are illustrated through case studies of two typical metro stations – an inner-city neighborhood and an upcoming area in the periphery of the city.

This paper discusses WRI India Ross Center’s experience working in Bengaluru in order to understand the results of its deep engagement through the Sustainable Cities program. It captures a decade of growth, work, outcomes and learnings for the organization, along with evaluating its role in advancing broader ecosystem change in the city.