BMRTL to clarify doubts on funding

BMRTL to clarify doubts on funding
New Indian Express

BANGALORE: Officers of the Bangalore Mass Rapid Transit Limited (BMRTL) are all set to clarify the Public Investment Board’s (PIB) doubts over the sourcing of funds for the Metro Rail project.

The PIB on Wednesday had in principle given acceptance to the project, but had asked the BMRTL to explain from where it intended to source the funds for the mega project.

Sources in the BMRTL say they have already prepared a case, which would be presented before the PIB during its next meeting. For the Rs-6,000 crore project, Rs 1500 crore will be borrowed as a term loan from commercial banks and another Rs 1500 crore will be taken as a loan from an international bank or collected through bonds.

“The State Government will give Rs 1800 crore and the Centre’s share will be Rs 1200 crore. Both the State and the Centre will jointly give another Rs 300 crore to the project in 2011,” sources said.

While the State and the Centre have given a commitment to give their share of the funds, over 30 banks have evinced an interest in being a part of the biggest infrastructure project in the city.

While these are all future commitments, the BMRTL has at present got over Rs 250 crore to begin the work. “The BMRTL does not require all the money at one go. As the work progresses, the money will flow in,” sources said.

Interestingly, the collection of funds through infrastructure cess was first started when H D Deve Gowda was the Chief Minister in 1995. The cess collection was extended all over the State during J H Patel’s tenure.

Even the ELRTS (Elevated Light Rail Transport System) project was first conceived during Gowda’s tenure, who has now made controversial remarks against the Metro Rail.

The project was later dropped by the Congress Government headed by S M Krishna, which opted for the Metro Rail.

WHERE WILL THE MONEY COME FROM? Rs 1500 crore from commercial banks Rs 1500 crore through bonds or from international banks Rs 1800 crore State Government share Rs 1200 Centre’s contribution