Gowda now halts Metro Rail project

Gowda now halts Metro Rail project
The Times of India

Bangalore: Former Prime Minister H D Deve Gowda is at it again. He has shot off another letter to Prime Minister Manmohan Singh and chief minister N Dharam Singh to stop the Bangalore Metro Rail project, saying its cost is prohibitive.

Gowda’s letter, dated October 14, says the Public Investment Board (PIB) meeting on August 5 didn’t clear the Metro Rail project. “I’m concerned about the nature of the project to be taken up for such an improvement of the transport system. It is my firm opinion that any project worthy of consideration should be economically feasible and technically viable.’’

He cited the Delhi Metro Rail project to bolster his argument about cost escalation. Gowda’s letter — his third on the issue — comes a fortnight ahead of the meeting of the Cabinet Committee on Economic Affairs (CCEA) that will consider the Bangalore Metro project for final approval.

Gowda asked the CM why the Metro Rail project was not brought before the state cabinet after the PIB raised certain questions and observations. They raised many issues with farreaching financial implications for the Karnataka government. I understand that our government has confirmed acceptance of all the points raised in the PIB minutes without the matter having come before the state cabinet.’’

Gowda, in his specific letter to the PM, said the project would raise the financial burden on the Karnataka government to a level that is beyond its capacity to bear. “I understand that the Karnataka government has written to the Union ministry of urban development, accepting the various stipulations put down by the PIB without having taken the matter to the cabinet or consulting the state finance department.’’

Facts on wheels
n Cost of acquiring 128 acres of land: Rs 153 crore
n Land acquired from state government: 53 acres at Rs 64 crore
n Total funds available for land acquisition: Rs 600 crore
n Total money spent so far: Rs 217 cr
n Balance land to be procured: 34 acres
n Money available: Rs 383 crore
n Karnataka govt’s collection through cess: Over Rs 800 crore