Investment Board backs Metro rail

Investment Board backs Metro rail
Deccan Herald

The PIB has sought some clarifications from the BMRTL chief regarding tax exemptions, project cost, financing and steps for metro rail’s optimum use.

The Public Investment Board (PIB) on Wednesday extended full support to the Bangalore metro rail project and did not consider any other alternative to it including mono rail.

The PIB, consisting of senior officials of Finance, Urban Development and Railway Ministries besides Planning Commission and UTI Bank, sought some clarifications relating to tax exemptions and funding of the Rs 6,000 crore project.

Headed by Adarsh Kishore, secretary, expenditure in Finance Ministry, the PIB observed that the metro rail project should be implemented in Bangalore, which urgently needed a proper urban transport project. It said systems like mono rail could be considered as a feeder service once the metro rail came up.

Official sources told Deccan Herald that the issue of controversial letter written by former prime minister H D Deve Gowda to Prime Minister Manmohan Singh opposing the Bangalore metro project came up at the meeting and it was decided to send a status report to the PMO on the project. The PMO, it was learnt, had marked the letter to the PIB.

The meeting asked Bangalore Metropolitan Region Transport Limited (BMRTL) managing director K N Srivatsava to clarify on certain aspects of the project such as tax exemptions, cost, financing and the steps planned for optimum use in two or three days. The PIB is likely to meet within a week when it is likely to clear the project.

The meeting also observed that the funding from the Japanese Bank for International Co-operation had not been structured yet.

Mr Srivatsava told this newspaper that he informed the meeting that the UTI Bank, which had made financial appraisal for the project, had agreed to raise Rs 3,200 crore to fund the project. Though there was no government guarantee, there would be escrow cover. The bankers had agreed to it, he said.

As for tax exemption, he said the State Government had agreed for exclusion amounting to Rs 177 crore, while the BMRTL wanted exemption of Rs 492 crore from the Union Government. The meeting also asked him why the BMRTL wanted such a high exemption. The meeting was informed that the BMRTL was seeking exemptions on the lines of those provided to the Delhi Metro project.

The issue of cost escalation also came up at the meeting and the PIB was told that about 10 per cent of escalation charges had been provided for in the project amount.

Mono rail for Delhi

Meanwhile, the Delhi government has asked RITES, a Government of India enterprise, to prepare feasibility study for a new mono rail system for the Capital. Delhi transport minister Haroon Rashid said it would complement the metro rail in the congested parts of the city.

Noting that the mono rail would act only as a feeder service, he said a Japanese company had made a presentation in this regard.

METRO ROW

Gowda calls for public debate

Bangalore, dhns: Janata Dal (S) leader H D Deve Gowda demanded a public debate involving experts and senior citizens to decide which mode of public transport system suits Bangalore well.

His demand was that any transport system should be feasible and should not over-burden the government and the people.