CCEA fails to take up metro rail project

CCEA fails to take up metro rail project

The Hindu

BANGALORE: The Cabinet Committee on Economic Affairs (CCEA) failed to take up the Bangalore Metro Rail Project once again at its meeting held in New Delhi on Tuesday. CCEA clearance is, however, only a formality as the project has crossed all other hurdles.

The Group of Ministers (GoM) had approved the Rs. 6,300-crore project early last month. On March 31, the Union Government signed a Memorandum of Understanding with officials of the Japan Bank for International Cooperation for a Rs. 1,795-crore loan for execution of the project. The Union Government is the borrower of the loan on behalf of the Bangalore Metro Rail Corporation Ltd.

Giving a boost to faster approval of the project by the Centre, the Union Cabinet had on April 5 accepted the recommendation of the GoM that operation and maintenance of metro rail systems and choice of gauge should be the domain of State Governments. The GoM, which was set up to recommend measures to facilitate faster implementation of metro rail projects, had asked CCEA to take up the Bangalore metro project for final clearance, and it was expected that the matter would be taken up at an early date.

Chief Minister, H.D. Kumaraswamy had declared that CCEA's approval was the only formality left before the work began.

The Union Budget for 2006-07 had made an allocation of Rs. 30 crore for the metro rail project. It envisages a network of 36.5 km along the two corridors, and is expected to be completed in five years.