BENGALURU (Metro Rail News): Fundraising targets through innovative financing models for Phase-2A & 2B of the Bengaluru Metro Rail Corporation Limited (BMRCL) has been reduced to INR 850 Crores, as per the Ministry of Housing and Urban Affairs (MoHUA).
Initially, the target of BMRCL to raise fund was INR 1,100 Crores which it hopes to raise further to INR 2,100 Crores as mentioned in the DPR (Detailed Project Report) but when the project got approval from state government in 2019, it was reduced to INR 900 Crores by MoHUA, which is now further reduced to INR 850 Crores as the final approval came from Union Government for both phases on Monday. The primary reason for lowering the targets is the lack of big offerings from private companies.
Under the model, BMRCL wanted to raise funds from private companies by providing direct access to their premises, giving them advertisement and naming rights along with willing to change the location of station for the benefit of company that wish to fund the project.
Real estate Embassy Group, and Intel Technology India Private Ltd have committed INR 100 Crores each to BMRCL for this project. Bangalore International Airport Limited (BIAL) will also fund the construction of the 4.95 km long airport stretch which will have 02 metro stations.
The total cost of the project is now reduced to be INR 14,788.101 Crores. The cost of metro line along ORR (Outer Ring Road) till the Kempegowda International Airport is reduced by INR 1790 Crores by MoHUA. The Centre and the state will provide 20% of the project cost each while state will further provide INR 2716 Crores for land acquisition and property development. JICA and ADB will also fund these both phases of Bangalore Metro.
BMRCL also hopes to raise fund amounting to INR 250 Crores from value capture financing which is linked to the principle that private land and buildings benefit from the public investments in infrastructure.
Phase-2A comprises construction of 19.75 km long elevated corridor connecting KR Puram to Central Silkboard with 13 stations while Phase-2 comprises construction of 38.44 long corridor connecting K R Puram to the Kempegowda International Airport via Hebbal Junction with 17 stations on the route. Both phases will be operational in next five years.