The Hindu : New policy puts paid to metro bus project

Online edition of India's National Newspaper
Sunday, Oct 12, 2003

Southern States

Southern States - Karnataka-Bangalore

New policy puts paid to metro bus project

By B.S. Ramesh

BANGALORE Oct. 11. The metro bus project for Bangalore city, which was to be implemented with financial assistance from Sweden, has been given a decent burial due to the new "donor policy" announced by the Centre recently.

Highly places sources in the Government told The Hindu that the decision not to take up the prestigious project with Swedish aid followed the Centre's recent decision on receiving aid from foreign countries and institutions.

The Centre has decided to allow only a handful of countries and institutions, including the U.S., the U.K., Japan, Russia, the U.N. and Asian financial agencies to finance developmental projects in the country. Since the Bangalore Metropolitan Transport Corporation (BMTC) was to implement the metro bus system with financial assistance from the Swedish International Development Agency (SIDA), the new donor policy automatically prevented small countries such as Sweden from funding projects.

Under the project, which was conceived more than three years ago, SIDA had agreed to provide 21 million Swedish kronor (U.S. $7 million/Rs. 32 crore) as soft loan to the BMTC. The project soon ran into rough weather and SIDA decided against funding it when it found that the BMTC had deviated from the original concept.

In 2002, SIDA once again renewed its offer to finance the project, and the BMTC in turn drew up a revised proposal and submitted it to the State Government.

A pilot project was taken up and the BMTC was running four routes under the metro bus system.

Proposed to provide high-quality commuter services in the city, the project was expected to ease the pressure on roads by weaning away a substantial number of motorists, mainly two-wheeler riders. It was also being seen as the answer to the underground metro and other systems of transport.

The BMTC now is stuck with the unenviable task of either implementing the project on its own or seeking assistance from the Government or any of the donors approved by the Centre.

Another reason being cited for the failure of the project is the inability of the civic agencies to identify roads and earmark separate lanes on roads for the metro buses.

The sources said a representation had been to the State Government which, in turn, would take up the matter with the Centre.

They said a few other projects were also likely to be affected by the new donor policy.

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