Namma Metro to get fresh lease of life

Namma Metro to get fresh lease of life


Monica Jha | ENS
10 Sep 2008 04:08:00 AM IST

BANGALORE: The completion of 100 days of the State Government has brought cheers to the Bangalore Metro Rail Corporation Ltd. (BMRCL), the implementing agency of the metro rail project ‘Namma Metro’. Officials at the BMRCL are in high spirits as the Yeddyurappa Government has released Rs 200 crore for the project.

“This is the largest single release of funds from the Government for the metro rail project. Now, the Government of India will complement these funds with another Rs 200 crore as the State and Central Governments are equity partners in the metro project,” said MD of BMRCL, N Sivasailam.

Out of the Rs 200 crore released by the State Government, Rs 100 crore is towards equity and Rs 100 crore as loan. The fund is part of the Rs 700 crore which the State Government has allocated for metro work in this year’s budget.

BMRCL in an official letter to the State Government on August 21, had sought Rs 350 crore - half of the budget allocated- for immediate release for payments against land acquisition and other expenses.

State budget allocation of Rs 700 crore also ensures Rs 700 crore from the Central Government for metro work. Apart from the total committed fund of Rs 1,400 crore, BMRCL has options for another Rs 400 crore from the Centre and State.

The total budget for Namma Metro in 2008-09 is Rs 1,211 crore, which would leave BMRCL with some funds in excess by the end of the current financial year. BMRCL is planning to use the excess fund for metro work in the first quarter of the next financial year.

“The largest withdrawal of funds would be in April 2009 when work on underground section and signalling would cost over Rs 300 crore. Towards the end of March 2009, the BMRCL would withdraw the money to be spent in the month of April so that work does not stop due to lack of funds till the funds for the next fiscal year are released,” said Sivasailam.