Delay in inflow of money for Metro Rail project

Delay in inflow of money for Metro Rail project


Monica Jha
First Published : 20 Feb 2009 04:33:00 AM IST
Last Updated : 20 Feb 2009 10:06:41 AM IST

BANGALORE: Interim Union Budget 2009- 10 left a few questions unanswered about inflow of money for Metro Rail project.

Friday will be the state’s interim budget to decide the fate or at least its pace.

The project completion date for Phase I is December 2010, the budget for 2009-10 would be the last budget to fill the gap between the requirement and allotment of funds until the government(s) choose to delay the project.

According to the latest estimates, the project cost for Phase I has gone up to Rs 10,263 crore with escalated costs of Rs 8,500 crore and the newly added extensions at a cost of Rs 1,763 crore.

Phase-I was estimated to cost Rs 6,395 crore in May 2006.

However, BMRCL has received only Rs 1771.26 crore from governments in addition to Rs 38 crore from Japan Bank for International Cooperation.

However, BMRCL MD, N Sivasailam, doesn’t see any possibility of fund crunch.

Centre: When will government release funds? Centre has a responsibility to fund 25 per cent (as 15 pc equity+ 10 pc sub-ordinate debt) of this project.

State: The state has so far allocated only 39 per cent of the funds that it is supposed to allocate. It is supposed to fund 30 per cent (as 15 pc equity+ 15 pc sub-ordinate debt) of the funds of the project (Phase I).