Saturday, July 25, 2009

Metro cost up by Rs 2,025 cr

Metro cost up by Rs 2,025 cr
Rising Prices Of Inputs Are Factors
S Kushala |TNN

Bangalore: Namma Metro project is three years into construction of Reach 1, but cost could have already shot up by Rs 2,025 crore — a good 25% of its original estimate.
With 50% of the work completed on Reach 1 (BRV to Byappanahalli), construction has been buffeted by an unsteady market of fluctuating steel and cement prices, delay and revised cost.
Bangalore Metro Rail Corporation Limited (BMRCL), which is carrying out a re-estimate of the outlay, has found that the cost could have easily shot up by Rs 2,025 crore. The earlier 33 km of mass rapid transport network, drawn up at Rs 6,400 crore, was expanded to 42.3 km. The additional extension of 9.3 km cost the BMRCL Rs 1,763 crore, taking the total cost to Rs 8,100 crore, as of now.
The steep hike in steel and cement prices over the past four years is a major propellant. When the detailed project report was being prepared in 2005, steel prices were Rs 20,000 per tonne and cement was Rs 3,000 per tonne. Over the years, the prices oscillated and today, steel is close to Rs 40,000 per tonne. Similarly, cement stands at Rs 5,000 per tonne.
“Though we had in-built 5% escalation in the project cost when preparing the estimates, it has definitely gone beyond that. Cement and steel prices have been major factors,’’ says BMRCL director, project and planning, B S Sudhir Chandra.
The salary revision as per the Pay Commission recommendations has also pinched the BMRCL’s administrative expenditure. There is a 40-60% hike in salaries paid to general consultants now, compared to what was being paid when they were appointed.
Current prices Cost per km
Rs 191.48 crore
Rs 5,000 per tonne
Rs 40,000 per tonne
If prices continue to spiral, cost could rise to
Rs 225 crore/km BANGALORE METRO
Metro Rail
add to cost
Bangalore: The Bangalore Metro project has become costlier. Here are some of the reasons:
With the current cost being Rs 8,100 for 43.2-km network, the average cost per km works out at Rs 191 crore. However, the elevated and underground rail costs differ. The 36.2-km elevated rail’s cost is Rs 170 crore/km while the 7-km underground stretch cost has been put at Rs 360 crore/km.
“We are expecting a minimum 20% increase in these
prices, as of now. In another 10 days, the process of re-estimation should be complete and the latest figures will be submitted to the bank,’’ BMRC director (project and planning) B S Sudhir Chandra said.
Though the groundwork like road diversion for the underground rail network will start next month, the actual tunneling work will happen only after one year. The tunnel-boring machines, being manufactured in Germany, will arrive after 12 months. By then, work on the stations will be in progress.
The North-South corridor which originally was 14.9 km got extended to 24.2 km at an additional cost of Rs 1,763. The extensions — Yeshwantpur to Hesarghatta Cross on the northern corridor, covering a distance of 5.6 km, with six elevated stations at a cost of Rs 1,082 crore; RV Road terminal to Puttenahalli Cross on the southern corridor covering a distance of 3.7 km, with three elevated stations at a cost of Rs 681 crore.


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