BANGALORE: Two Bangalore-based experts have come out with a suggestion for financing the proposed Bangalore Metro Rail Project.

J.T. Prakash, former Chief Engineer, Bangalore Water Supply and Sewerage Board, and M. Seshagiri Rao, retired Chairman and Managing Director, Rail India Technical and Economic Services, have said that the project will never become viable with funds borrowed from various financial institutions. The only way out is for the public to directly fund the project in a cooperative or shareholding effort, they have said.

The metro will cost over Rs. 6,000 crores. If the Government commissions it with borrowed money and if the loans are to be repaid over a span of 15 years, the burden on the people will be about Rs. 1 crore a day. The execution of the project with borrowed funds will further increase the burden on people in the form of tax, they have said.

Citizens can promote the project by becoming shareholders. The shares could have a lock-in period of at least five years so that there is no trading until the shareholder is fully aware of the performance of the metro and the value of his shares. Shares can be distributed among households and payments collected in monthly instalments along with utility bills, they said. Over 70 lakh people reside in Bangalore and 20 lakh of them are daily commuters, Mr. Prakash and Dr. Rao have said.

The Government has been collecting cess on petrol and diesel since 1998 towards infrastructure development. The amount collected could be used for the project.

Implementation of the project through a cooperative venture will help avoid resistance from those who have to be relocated. Decisions can be taken quicker since there will be no evaluations and clearances required from financial institutions, they have said.

At present there are 22.5 lakh vehicles registered in Bangalore, and by the end of 2010 the number is expected to go up to 35 lakhs.

On the gauge for the metro, they opposed standard gauge since it will increase the cost. Standard gauge is a widely preferred in foreign countries. Broad gauge will save a lot of expenditure, they have said.

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