Friday, July 29, 2005

State might face heat to rope in private players

State might face heat to rope in private players
New Indian Express

BANGALORE: The State government might come under pressure to go for a public-private partnership (PPP) to make the Bangalore Metro Rail project happen.

This comes in the wake of the clearance by the Cabinet Committee on Economic Affairs (CCEA) on a scheme for funding mega projects, including urban transport projects, which have more than 51 percent partnership from private sector.

Though Union Finance Minister P Chidambaram, who made the announcement in this regard on Monday, did not make any specific mention about the Metro project, the move certainly has put pressure on the State to consider proposal offered by a Malaysian consortium, Kencana Kasifa Transit Systems (KKTS), sources said.

The State government and Bangalore Mass Rapid Transit Limited (BMRTL) cannot ignore the CCEA, which has to clear the project, after it gets approval from the Project Investment Board (PIB). Besides, the Centre is also investing Rs 1,800 crore in the Rs 6,300-crore project.

Meanwhile, the KKTS has termed the CCEA scheme as welcome move that encourages private investment in the infrastructure projects. “Many cities in India are going in for PPP and on BOOT (Build Own Operate and Transfer) basis. Bangalore should also wake-up to the call,” KKTS managing director Sayed Saahil Saif told this website’s newspaper.

The KKTS chief said the company has stopped pursuing their proposal with the State government, which has not considered it so far. “However, if an opportunity is given we are more than willing to come and invest in Bangalore Metro Rail project,” he added.

The KKTS has offered 90 percent funding to the project. It has even agreed to follow the BMRTL alignment and abide by its time schedule to complete the project.

Meanwhile, the BMRTL is awaiting the PIB approval to start the work. The board is expected to meet in New Delhi on August 5 and will examine the clarifications, which it had sought from the BMRTL during its previous meeting held last month.


Post a Comment

<< Home