Chikkarangappa's (69-67-68) brilliant third round effort took his three-day total to 12-under-204 at the Karnataka Golf Association (KGA) course here.
Noida's Gaurav Pratap Singh (68) and Panchkula's Shubhankar Sharma (70) were tied for the second place at nine-under 207.
The 23-year-old was off to a terrific start on day three as he reeled off birdies on the first three holes. Chikka landed it within four feet for the second time during the day for another birdie on the sixth. However, a couple of erratic tee shots on the fourth and ninth resulted in bogeys and saw him make the turn at two-under.
Chikka said, "I enjoyed a great start over the first three holes. Thereafter, my course management wasn't good. I kept putting myself under pressure trying to hit difficult shots, especially on the par-5s.
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"Scoring on the par-5s used to be my strength but for the last few weeks I've not been able to capitalize on the par-5s. That's one issue I need to address immediately.
"I'm looking to improve on my tee shots in the final round since I missed a few fairways today but was lucky to not get into too much trouble," added Chikka.
Gaurav (67-72-68), improved from overnight tied 8th to tied 2nd as a result of his 68. Shubhankar (68-69-70) moved up one place from overnight 3rd to tied 2nd after a round of 70.
Bengaluru amateur Jaibir Singh slipped from tied fourth to tied seventh after his third round of 71. Sri Lankan Anura Rohana too shot a 71 to join Jaibir in tied seventh place at seven-under-209.
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In-form Chawrasia and Bhullar, winners of two titles each on Asian Tour this year, will be the men to beat in the start-studded field of 64 golfers.
The duo is riding high on confidence ahead of the year-ending tournament of the PGTI having posted international wins just about a month back.
"I have some very positive vibes coming into the McLeod Russel Tour Championship as I won the first edition of the event back in 2012. It is an event that I eagerly await all year. It's also great to be back at RCGC as this is my home course and I began my golfing journey here," the local lad said.
Chawrasia will be playing his first round alongside Bhullar and Shiv Kapur.
Bhullar, who finished tied second at the 2014 edition of the event, rated this as one of my favourite golf courses in India.
"I'm raring to go as all the big names are here. I'd like to thank the sponsor McLeod Russel for giving me an invite and this opportunity to be here," Bhullar, who's making his fourth appearance, said.
"Hitting maximum fairways and holing putts will be the key this week. You have to give yourself chances on the greens here at RCGC.
Shubhankar Sharma, leading the Rolex Ranking in Order of Merit, will have a great opportunity along with Khalin Joshi, Rashid Khan and Honey Basioya to win the title.
"I've had a few good weeks in the run-up to this event. I put in a solid performance at the Asian Tour event in Delhi earlier this month where I claimed joint second place. I'm playing better with each week and looking to improve upon my short-game," he said.
"This course requires a good all round game. One needs to strike it well and also grab the opportunities on the greens."
The tournament will decide the Rolex Ranking champion.
At the moment, there is very little to separate the top five -- Shubhankar Sharma, Shamim Khan, Khalin Joshi, Rashid Khan and Honey Baisoya -- as there is just a gap of under Rs. 11 lakh between them.
The winner takes home a prize purse of Rs 22,50,000.
The foreign challenge is being led by the Thai duo of Pariya Junhasavasdikul, a two-time winner on the Asian Tour, and 18-year-old sensation Suradit Yoncharoenchai.