BMRTL sends clarifications on Metro Rail

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Clearance Expected Next Week
The Times of India

The Bangalore Mass Rapid Transit Ltd has submitted clarifications on reasons for getting tax exemption as sought by the Public Investment Board following a meeting in Delhi a couple of days ago. With this, the PIB is scheduled to call for a meeting next week to clear the Bangalore Metro Rail project.

BMRTL managing director K.N. Shrivastava told The Times of India on Friday that a written clarification has been submitted seeking Rs 490-crore tax exemption. The letter said by the time the project is completed, the tax exemption required will be down to Rs 400 crore due to falling tax rates.

Also, BMRTL has sought legal coverage of the project on the lines of Tramways Act. Since Metro Rail, like the tramway, is a rail system operated within the city limits, BMRTL has sought inclusion of this Act which gives the government a leeway to provide approvals from time to time as required by the project. Shrivastava said: “We’ve sought this as the Metro Rail project need not rush to the railway ministry for every single sanction.’’

Also, a clarification is sought on establishing Metro Rail’s safety system and safety commissionerate, to be manned by railway officials. Shrivastava said the Constitution stipulates that the transport system is within the purview of the state government. “Therefore, we’re seeking that the legal aspects too should be within the ambit of the state government.’’

The BMRTL has explained its preference for the standard gauge, saying it will bring down project cost by Rs 600 crore and avoid razing of properties. About cost escalation, BMRTL has said the detailed project report (DPR) had listed detailed provisions, including one that seeks to absorb 10% cost rise. The estimates of Rs 6,207 crore have factored in possible escalation during construction. Therefore, the estimates are “realistic’’.

Tramways Act
Like in Kolkata, tramways, under the provisions of the Act, can run on roads. They needn’t have a separate way. Tramways don’t have dedicated tracks and theirs will be combined with the road. At crossings, no signals are required. Even without the Tramways Act, the Bangalore Metro Rail project need not knock on the doors of railway ministry for approvals. The system has to follow the Railway Act, under which the Metro Rail will be a permanent way and none can travel on that.