Govt. sleeps, but Japanese bank finalizes dole for Metro

Metro rail: MoU signed with Japanese bank

The Hindu

Centre signs accord for a loan of Rs. 1,795 crore

# Only the CCEA approval awaited for the project
# Kumaraswamy says State Cabinet will decide on route alignment
# Says State Government has no intention to cause inconvenience to people while acquiring land


BANGALORE: The Government of India on Friday signed a Memorandum of Understanding (MoU) with officials of the Japan Bank for International Cooperation (JBIC) for a Rs. 1,795-crore loan for the execution of the Bangalore metro rail project.

Union Finance Minister P. Chidambaram and Union Minister for Urban Development S. Jaipal Reddy signed the MoU with officials of JBIC in the presence of the Japanese Ambassador in New Delhi, Yasukuni Enoki.

Work as per schedule

Chief Minister H.D. Kumaraswamy told presspersons here on Friday that work on the Rs. 6,350-crore metro rail will begin as per schedule.

The Centre and the JBIC signed the "exchange of notes" on granting loan for a 30-year period at an interest rate of 1.3 per cent.

The project loan has a moratorium of 10 years.

The State is expected to bear Rs. 1,800 crore and the Centre Rs. 1,500 crore of the cost of the project.

The remaining part of the funds will be raised from the domestic market.

The Union Budget for 2006-07 has made an allocation of Rs. 30 crore for the metro rail.

The project envisages a network of 36.5 km along the two corridors and is expected to be completed in five years after the work begins.

It provides for two lines — one from Jalahalli Circle to R.V. Teachers' College, Jayanagar, and the other from Mysore Road to Byappanahalli.

It has decided to opt for standard gauge with 36 stations, with an elevated line running to 29.15 km and an underground line of 6.7 km. Mr. Kumaraswamy thanked Mr. Chidambaram and Mr. Reddy for taking the initiative in obtaining the loan from the JBIC and giving the nod to the long-awaited project.

The approval of the project by the Cabinet Committee on Economic Affairs (CCEA) "is the only formality" left, and the Centre is in no way delaying the sanction for the project, he said.

Land acquisition

Bangalore Metro Rail Corporation Ltd. (BMRC) will acquire 190 acres of government land and 28 acres of private land for the project.

The project kicked up a controversy when the BMRC announced that it proposed to acquire private property in some localities in the city. Residents in Indiranagar and Srirampuram staged demonstrations recently stating that the alignment of the metro rail will dispossess them of their property.

Mr. Kumaraswamy said that the Government is against creating problems for citizens in the matter of land acquisition. Issues pertaining to route alignment and monorail for providing links to metro rail will be decided at the next Cabinet meeting.

The corporate office of the BMRC will be opened soon at the BMTC bus station complex at Shantinagar, Mr. Kumaraswamy said.

BMRC Managing Director V. Madhu will take into account all problems confronting the citizens during the execution of the project.

The corporation has begun the groundwork and there is no delay in the execution of the project, the Chief Minister said.

In fact, the BMRC conducted a joint inspection with representatives of utility services to identify utility lines in different locations where pillars are to be erected for the elevated line.

Governor T.N. Chaturvedi recently unveiled the logo "Namma Metro" (our metro) for the metro rail.

Chief Secretary B.K. Das and Mr Madhu were present.

Uncertainty cleared

With the CCEA not clearing the project in the last few weeks, there were doubts about the project getting the loan from JBIC this financial year.

But by signing an accord, the State and Union governments have paved the way for early beginning of the work on the project, expected to decongest the city's traffic.

The project is likely to be completed in five years while the first metro train is scheduled to be introduced in three years.