Bangalore Metro Rail suffers yet another delay

Bangalore, Mar 19: The much-awaited Rs 6,300 crore Bangalore Metro Rail project is unlikely to see the light of the day soon as the Union Cabinet Committee of Economic Affairs (CCEA) may take a few more weeks to clear the project, Union Urban Development Minister S Jaipal Reddy informed today (Mar 19, 2006).

Inaugurating the 160 type III and IV quarters of General Pool Residential accommodation constructed by the Central Public Works Department (CPWD) at HSR layout here, he said the CCEA would take a few weeks to consider in detail the recommendations of the Group of Ministers, which recently cleared the project, and issues related to the project, including fixing safety agencies, whether it would be from the Union Government, private sector, Private-Public partnership with the State's assistance or a special purpose vehicle, before giving the final nod.

The CCEA was expected to discuss the Bangalore Metro in its meeting on March 23.

Mr Reddy said the Centre was aware of the fact that the Japanese Bank for International Cooperation (JBIC), a major financial source for the project, would not consider it unless the CCEA's approval was presented before it within this month, but exuded confidence that the bank would consider the project.

JBIC had agreed in principle to extend a loan of Rs 1,800 crore at only 1.50 per cent interest, while the Centre would allot Rs 1650 crore and the rest would be met by State and financial institutions.

On the protracted delay in taking up the project, the Minister said certain basic policies had to be settled before giving the green signal. The policies were common to proposals from other cities, including Chennai, Hyderabad and Mumbai. Both the Union and State Governments were committed to the execution of the project.

He said that under the ambitious Jawaharlal Nehru Urban Renewal Mission, the Centre was determined to raise Rs 50,000 crore by the end of 2011 and exuded confidence that State Governments would pool in resources at their level to make available better infrastructure.

UNI