PIB clears Metro Rail

PIB clears Metro Rail
Proposal To Be Placed Before CCEA; It’ll Be Standard Gauge
The Times of India

Bangalore: The Public Investment Board (PIB) has finally cleared the Phase-I of Bangalore Metro Rail project, estimated to cost Rs 6,207 crore.
However, an important component relating to tax exemptions of Rs 490 crore, sought by Bangalore Mass Rapid Transit Ltd (BMRTL), for the project has not yet been decided, BMRTL MD K.N. Shrivastava said.

The Union finance ministry will confirm in the next couple of days whether tax exemptions could be granted, as was done in the case of Delhi Metro. If such exemptions are denied, BMRTL will have to get a higher equity sharing from the central government. It can either be in the form of equity, or subordinate debt to be paid upfront.

The proposal will now be placed before the Cabinet Committee on Economic Affairs (CCEA) for approval. The Union urban development ministry will prepare a cabinet note to be sent to the CCEA.

With the PIB clearance, the Bangalore Metro has crossed a major hurdle. The PIB meeting, chaired by expenditure secretary in the Union finance ministry Adarsh Kishore and which went on for two days, was attended by Karnataka chief secretary B.K. Das, principal secretary (finance) Sudhakar Rao, urban development secretary Shamim Banu, BMRTL MD K.N. Shrivastava and Delhi Metro Rail Corporation (DMRC) MD E. Sreedharan, among others.

Now BMRTL will start construction of the first leg in Phase-I, the 7-km section between Byapanahalli and Cricket Stadium, mostly on elevated surface. Tenders for the section have been called and they will be shortlisted soon. BMRTL has also called global tenders for appointing a general consultant for the entire project. The general consultant will be responsible for day-to-day work, Shrivastava said.

Bangalore Metro will have a standard gauge and will take cover under the 100-year-old Mysore Tramways Act, which will require some amendments by the state government to suit the present day needs. With this, BMRTL can avoid going to the railway ministry for all sanctions.

BMRTL will now become a joint venture company with five directors from the central government and five from the state government on its board, on the lines of DMRC. Union urban development secretary Anil Baijal will be the chairman and Shrivastava the managing director of the joint venture.