Metro Rail put on fast track

METRO RAIL PUT ON FAST TRACK
Karnataka Cabinet’s Final Nod Likely Tomorrow
The Times of India

Bangalore: Metro on the move, finally. In a swift and sure action, the Karnataka government on Tuesday put the much-wanted Bangalore Metro Rail project on the right track. Propelled by finance minister P. Chidambaram’s announcement for a 50 per cent equity in the Union budget, the Bangalore Metropolitan Transport Limited (BMRTL) officials met Delhi Metro Rail Corporation (DMRC) managing director E. Sreedharan in Bangalore on Tuesday.

The project, estimated to cost Rs 5,605 crore (construction cost), is expected to get the Karnataka Cabinet’s final nod on March 3. The in-principle clearance was given a year ago.

Showing signs of total commitment, the project investment board (PIB) under the Centre, circulated a memo with the agenda note to six parties — planning commission, urban development department, finance ministry, ministry for programme implementation, ministry of railways and ministry of environment and forests — for their comments on Tuesday.

Once the comments are in, the PIB meeting will be chaired by the expenditure secretary (ministry of finance) for project approval and then the report will come before the Cabinet Committee on Economic Affairs (CCEA) for the final nod.

“Since the FM has already announced the allocation in the budget, the procedure has picked up momentum,” BMRTL managing director K.N. Shrivastava told The Times of India.

FUNDING FUNDAS

The four-key funding components are: Rs 900 crore equal equity from Centre and state. Rs 246 crore interest subsidy (each). Rs 127.50 crore debt services reserve (each). Rs 173.50 crore capital expenditure assistance (each). The Government of India and the Karnataka government will thus contribute totally Rs 1,447 crore each. In addition, the Karnataka government will spend Rs 360 crore towards land acquisition taking its contribution to Rs 1,807 crore. Apart from the contribution from the Centre and the state, an amount of Rs 2,953 crore has been earmarked to be raised as a debt from the market. BMRTL has appointed UTI Bank as fund arrangers, while a private equity of Rs 500 crore will be raised for the first time to help reduce the loan component, Shrivastava said.

The written permission from the Centre is expected to come by March end and the BMRTL will call for prequalification (PQ) bids in the first week of April to appoint general consultants. A consortium of eight to 10 Indian and foreign companies will be finalised by middle of August 2005.

LAND ACQUISITION

Shrivastava said that the BMRTL will commence land acquisition soon after the Karnataka cabinet gives its final consent. As the cost of land acquisition has shot up since the draft proposal (DPR) was finalised in 2003, there is a revision in the cost of land acquisition, which now stands at over Rs 600 crore, thereby pushing the total project cost to Rs 6,207 crore.

METRO WITHIN 5 YEARS?

The general consultants will then award contracts for packages of various sections, and this will be completed by November 2005. The entire project will be completed in five years. The DMRC will be appointed as consultants to clear designs and check quality of work. The first physical construction is expected to start by June 2005. The Rail India Techno and Economic Services, who are consultants for the elevated line between Byapanahalli and Cubbon Park will complete the work in 3.5 years.

PROJECT CHUGS AHEAD, BUT...

Bangalore’s ambitious Metro Rail project has got a definite boost, thanks to the Union budget giving it a mention. But this is just the beginning of the road for the same, since the following are still due:

Clearance by state cabinet (expected March 3)
Projects Investment Board’s nod from Centre (expected March 20)
Cabinet Committee Economic Affairs clearance (by March 30)
Financial closure (by April)
Land acquisition (after state government nod)
Pre-qualification and financial bids to be called and finalised for construction (April first week)
Start of construction by RITES between Cubbon Park (cricket stadium) and Byapanahalli (expected by June)
Appointment of general consultants to oversee project (mid-August)
Environment clearance (Not required)
Awarding of contracts for various packages (Nov. 2005)
(Dates given by project company Bangalore Mass Rapid Transit Ltd’s MD K.N. Shrivastava).