B’lore Metro: the train to nowhere?

B’lore Metro: the train to nowhere?
Deccan Herald

With just two days remaining before the current financial year comes to a close, the Bangalore Metro will miss the last available opportunity to get the go-ahead from the Centre this fiscal.

With just two days remaining before the current financial year comes to a close, the Bangalore Metro will miss the last available opportunity to get the go-ahead from the Centre this fiscal.

Well placed sources said late on Wednesday that the issue of final clearance for the much delayed project was unlikely to figure on the agenda at the weekly meeting of the Cabinet Committee on Economic Affairs (CCEA) scheduled for Thursday. As such, Thursday’s meeting will be the last meeting of the CCEA this fiscal that ends on March 31.

The Central final clearance, including its financial participation to the tune of Rs 1,650 crore in the metro project, is considered necessary for the Japan Bank for International Cooperation’s (JBIC) proposed Rs 1,800 crore soft loan for the project. The availability of the JBIC loan during the next financial year is said to be contingent upon the Union Government’s clearance for the project by the end of this financial year since the JBIC board takes decisions on extending loans on the basis for prior clearance for the project.

JBIC has before it 10 project proposals from India for loan approvals in the next financial year. The proposal for funding Bangalore Metro to the tune of Rs 1,800 crore is one of them. The fact that the CCEA is most unlikely to take up for approval the Bangalore Metro project at its Thursday meeting is bound to cast a shadow over the H D Kumaraswamy-led Karnataka government’s enthusiasm to start work on the project.

Govt optimistic

However, sources in the Manmohan Singh government continued to maintain an air of optimism. “Some way out could be found to ensure that the JBIC proposal is kept alive so that the funding is available as soon as the project is cleared,” the sources said.

Apparently, the Union Finance Ministry could step in to see that the availability of JBIC funding for the metro project in the new financial year will not lapse. It was not clear what arrangement the Finance Ministry could work out to meet JBIC requirements.

Significantly, Bangalore Metro’s new managing director V Madhu was in the Capital during the day. He met the Union Urban Development Ministry secretary in the afternoon for consultations on the issue. Mr Madhu, who had come here Tuesday evening, is also believed to have got in touch with JBIC officials in the capital. Asked about his Delhi mission, Mr Madhu pleaded his inability to share contents of his discussions.

“Things are moving in the right direction. But at this stage I can’t share anything. I will come back here next Wednesday. A clear picture will emerge by that time,” Mr Madhu said before his departure for state capital late in the evening.

When contacted, JBIC officials too refused to speak on the subject. “We would not like to say anything now. Maybe next Monday we may be able to speak about it,” said an unnamed JBIC official in the capital.