Centre approves Rs 6,395 cr Bangalore Metro project

NEW DELHI: After years of delay the Bangalore Metro Rail project is finally set to take off with the Centre giving the go ahead signal to the Rs 6,395 crore venture.

The metro project in the Garden City, first proposed in 1982, will now be implemented for a 33 km long route by Bangalore Metro Rail Corporation Ltd (BMRCL), which will be made a joint venture between the Centre and Karnataka government by enhancing authorised capital, sources said.

Currently, Bangalore Metro Rail Corporation is wholly owned by the Karnataka government.

The state government will hold 30 per cent stake (15 per cent each of equity and subordinate debt) in BMRCL, Centre will hold 25 per cent (15 per cent equity and 10 per cent sub ordinate debt). The remaining 45 per cent stake will be raised as senior term debt.

The Union Cabinet had already given its nod in April this year for the project that is expected to be completed by 2011.

As a part of approval by the Union Urban Development Ministry, the BMRCL board will also be reconstituted with 10 directors, each promoter appointing five directors.

Sources said Secretary; Union Urban Development Ministry will be the Chairman of the Board, while the state will appoint the Managing Director with consent from the Centre.

Keeping in mind the experiences of political issues and land acquisition problems that had plagued the project in its concept stage itself, the Centre has proposed setting up of three committees to tackle various levels of management of issues relating to the project, the sources added.