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As per the proposal, commuters driving alone into Outer Ring Road would pay a fee via FASTag, while cars with two or more occupants would be exempt, incentivising carpooling
Bengaluru’s roads have always reflected the city’s paradox: rapid economic growth paired with infrastructure lag.
Bengaluru’s traffic nightmare is back on the discussion table and, with it, the idea of a congestion tax. A high-level meeting involving Biocon’s Kiran Mazumdar-Shaw, Yulu co-founder RK Misra, Chief Secretary Shalini Rajneesh, and other officials explored several measures to unclog the city’s roads.
So, what would a congestion tax mean in Bengaluru? Commuters driving alone into the Outer Ring Road (ORR)—a 60-kilometre stretch linking tech hubs, commercial centres, and residential neighbourhoods—would automatically pay a fee via FASTag. Cars with two or more occupants would be exempt, incentivising carpooling and reducing single-occupancy vehicles.
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Globally, congestion taxes are not new. Singapore uses a fully automated system with variable charges depending on time and location. London levies fees for entering central zones on weekdays, while Stockholm charges vehicles entering the city during peak daytime hours. The results are mixed: London saw moderate congestion reduction but required heavy monitoring and substantial investment in public transport; Stockholm faced initial resistance and had to tweak charges; Singapore succeeds largely due to its robust, efficient transit network.
In India, attempts in Delhi and Mumbai largely failed, blocked by political opposition and lobbying from private vehicle interests. Bengaluru would be venturing into uncharted territory, making public transport upgrades and strict enforcement critical for success.
The logic behind the proposal is simple: drive alone into a high-density corridor, pay a fee; carpool, avoid the charge. High-density stretches under consideration include ORR, Sarjapur Road, Hosur Road, Old Airport Road, Old Madras Road, Bellary Road, Bannerghatta Road, Kanakapura Road, Magadi Road, West of Chord Road, and Tumakuru Road. With an estimated 12 million vehicles entering Bengaluru daily, the tax could generate significant revenue, which can be reinvested in public transport and infrastructure.
Authorities are considering FASTag, operational since 2021, for automatic collection. Toll points with cameras would capture vehicles entering these stretches, and charges would be deducted from the owners’ bank accounts. The goal is to encourage carpooling, reduce single-occupancy cars, and nudge commuters toward public transport, all while improving traffic flow.
Other ideas are also on the table. From work-from-home Wednesdays to seeking cooperation from companies like Wipro to divert traffic through private campuses, authorities are exploring multiple ways to ease pressure on critical junctions such as Iblur and the ORR.
Karnataka Chief Minister Siddaramaiah had reached out to Wipro founder Azim Premji, proposing limited vehicular movement through the company’s Sarjapur campus under mutually agreed terms. In a letter, Siddaramaiah highlighted the chronic congestion during peak hours, noting its impact on mobility, productivity, and the quality of urban life. He praised Wipro’s role in advancing the state’s IT ecosystem and socio-economic development, while stressing the urgent need to ease traffic at choke points like Iblur junction.
“In this context, I wish to explore the possibility of permitting controlled vehicular passage through the Wipro campus, subject to mutually agreed terms and necessary security arrangements,” Siddaramaiah wrote. Traffic experts preliminarily suggested such a measure could reduce congestion on adjoining stretches by nearly 30 per cent during peak hours.
Premji, however, declined the request, citing that the campus is private property and not meant as a public thoroughfare. The company also noted that allowing public traffic could create significant legal, governance, and regulatory challenges. Wipro did offer to commission a scientific study led by an entity with global expertise in urban transport management and share the cost, signalling a willingness to contribute to long-term solutions.
Bengaluru traffic police are also turning to the tech industry for solutions. Joint Commissioner Karthik Reddy proposed that Wednesdays, statistically the worst day for congestion, be earmarked as work-from-home days. In a meeting with the Outer Ring Road Companies Association (ORRCA), Reddy laid out three strategies: stagger office start times, promote public transport, and encourage WFH on Wednesdays. Most companies already allow WFH once or twice weekly; the suggestion was to time it for peak congestion. Companies reportedly responded positively.
A year ago, an expert committee in collaboration with the Karnataka government recommended a congestion charge in its report titled Karnataka’s Decade—Roadmap to a $1 Trillion Economy. The aim: improve travel times for buses, cars, and delivery vehicles, while making commuters aware of their impact during peak hours. The report envisioned levying charges on non-exempt vehicles and using revenue to expand public transport.
Other measures under consideration include AI-powered traffic signals, enhanced traffic enforcement, expanded BMTC bus services, staggered office timings, and campaigns to change commuter behaviour. Work-from-home schedules, if applied consistently, could flatten weekly traffic peaks significantly. AI systems are gradually helping manage flow, and with more intersections coming online, authorities hope to reduce congestion intelligently, rather than relying solely on new roads or flyovers.
Yet, Bengaluru remains caught between exploding vehicle growth and slow infrastructure development. A congestion tax alone cannot solve the problem. Critics are vocal. Entrepreneur TV Mohandas Pai warned, “Congestion tax without good public transport is punishment, not policy.” Without a functional metro network, expanded bus services, and reliable last-mile connectivity, the tax could unfairly hit commuters rather than alleviate traffic.
Bengaluru’s roads have always reflected the city’s paradox: rapid economic growth paired with infrastructure lag. Congestion is no longer just a nuisance—it is an economic and social drain. The debate over a congestion tax, WFH schedules, corporate cooperation, and AI-based traffic management is just one part of a larger, ongoing struggle to reclaim the city from its own success. Whether these measures will work or remain proposals on paper depends not only on policy decisions but also on the city’s ability to coordinate infrastructure, governance, and commuter behaviour in unison.
About the Author
Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously worked with t…Read More
Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously worked with t… Read More
September 27, 2025, 16:16 IST
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