Bengaluru: The State Cabinet on Thursday gave its nod for floating tenders for the metro project linking Silk Board and K.R. Puram, under Phase 2 (A). It also accorded approval for innovative financing initiatives of Bangalore Metro Rail Corporation Limited to raise money.
The BMRCL had signed an MoU with Intel India and Embassy Group to raise funds for construction of two metro stations at Kadubeesanahalli and Bellandur.
The Cabinet decision will help the BMRCL to reach an agreement detailing terms and conditions with corporate entities based on the MoU. The two corporate bodies have agreed to contribute ₹100 crore each to BMRCL payable in instalments, and they will get naming rights for a period of 30 years.
In other words, the corproate’s name will be prefixed to that of the station, like Embassy Kadubeesanahalli metro station. As per the terms of understanding, the companies will be offered 3,000 sqft space at the station for 30 years for retail purposes; advertisement space of 1,000 sq ft for the same period; and direct access from the concourse/ platform to the campus/ premises for 99 years.
A senior official of the BMRCL said, “Following the decision by the cabinet, the BMRCL will float a tender to execute the project.” The BMRCL is also in touch with other corporate bodies, real estate companies functioning along the stretch.
The Cabinet had earlier imposed a rider on the BMRCL that metro work on this line should commence only after it raised at least ₹250 crore through leasing of land, and received a commitment of another ₹250 crore through innovative financing.
The 17-km metro stretch will have 13 stations and is estimated to cost ₹4,202 crore. The State government had asked the BMRCL to raise ₹1,100 crore through innovative financing to implement the project.