Nama Metro gets a relief of Rs 160 crore

Nama Metro gets a relief of Rs 160 crore


Monica Jha
First Published : 09 Feb 2009 08:05:56 AM IST
Last Updated : 09 Feb 2009 09:33:12 AM IST

BANGALORE: Nama Metro has, finally, got some relief in terms of a Rs 160 crore reduction in the prices of rolling stock. Is the relief going to be passed to commuters? The answer seems to be no.

Bangalore Metro Rail Corporation Limited (BMRCL) looks non-committal on any possible reduction in the proposed fare hike after a reduction of 8.73 per cent on the original prices offered by BEML. Earlier, when BEML had offered a price much higher than what BMRCL had expected, the BMRCL was prompt to indicate that the fares would go up when the Metro starts operations.

BMRCL had earlier said that a 25 to 30 per cent hike was likely in the ticket fare which was in the range of Rs 7 to Rs 15.

Now, the BEML has reduced prices by Rs 160 crore, bringing down the prices below the BMRCL’s estimate. Prices of rolling stock was one-fifth of the total project cost, BMRCL had said. The same logic must apply when the rolling stock prices go down. Now, the rolling stock prices (Rs 1,672.5 crore including spares, training and manual support) form 16.3 per cent of the total escalated project cost (Rs 10,263), BMRCL clarifies Managing Director, BMRCL, N Sivasailam, said: “Higher prices from BEML might have caused a marginal hike, if any, in the fare. The major reason for hike in proposed fares was the escalation of the project cost.” The cost of the original 33-km project (Phase I) has gone up to Rs 8,500 from the original estimate of Rs 6,395 crore while a 9.3-km extension in the Phase I would cost an additional Rs 1,763. This means a hike of 60.48 per cent in the project cost. Metro fare would be less than 1.5 times bus fare for the same distance, Sivasailam explained