The Hindu : Karnataka / Bangalore News : Public Investment Board clears Metro rail for city

Online edition of India's National Newspaper
Sunday, Aug 07, 2005

Karnataka

Karnataka - Bangalore

Public Investment Board clears Metro rail for city

Special Correspondent

Government says it is committed to project

BANGALORE: With the Public Investment Board (PIB) clearing the Bangalore Metro Rail proposal of the Bangalore Mass Rapid Transit Limited (BMRTL) on Thursday, the file now moves to the Cabinet Committee on Economic Affairs (CCEA), which has to endorse the project. The CCEA is expected to meet later this month.

At Thursday's meeting in New Delhi, the Karnataka Government made it clear it is committed to the project and was represented by the Chief Secretary, B.K. Das, the Finance Secretary and the Secretary Urban Development, besides the BMRTL Managing Director, N.K. Shrivastava.

The PIB had sought clarifications such as basis for cost estimates; strategies to mitigate risk of cost overrun; clear statement on ridership projections and the revenue implications if these projections did not materialise; community consultations to enlist popular support, etc.

The first phase of the metro rail is expected to cover 33 km at an estimated cost Rs. 6,206 crores. The project runs 18.1 km in the East-West corridor and 14.9 km in the North-South direction. It is scheduled for completion in five years time from the date of commencement of work. The BMRTL is awaiting land acquisition from the Karnataka Industrial Area Development Board.

For the project, the Government of Karnataka has to provide Rs. 1,807 crores, while the Government of India Rs. 1,447 crores and a term loan of Rs. 2,953 crores. The Bangalore Mass Rapid Transit Limited (BMRTL), the implementing authority, has cash reserve of Rs. 216 crores plus Rs. 363 crores (share of BMRTL in infrastructure cess from 1998 to 2004).

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