BENGALURU: The state Cabinet on Thursday approved Bangalore Metro Rail Corporation Ltd's move to rope in corporates to fund the 17km KR Puram-Silk Board line under its innovative financing strategy. This paves the way for commencing work on this crucial Phase 2(A) project and BMRCL plans to call for tenders soon.
According to sources, the state Cabinet okayed the participation of Intel and Embassy Group to chip in with financial assistance for developing this `4,202 crore Outer Ring Road (ORR) line.
BMRCL Managing Director Mahendra Jain told The New Indian Express, "The government had laid a condition that the Metro must show proof of mobilising `450 crore as resources from land leasing and corporate development under its innovative financing strategy for ORR."
While BMRCL could mobilise `250 crore from its land leasing work, another `200 crore was mobilised by involvement of corporates. An MoU was signed a few months ago with Intel for developing Bellandur Metro station and with Embassy Group for Kadubeesanahalli Metro.
A high power committee headed by Chief Secretary Ratna Prabha has been constituted to finalise the modalities of innovative funding, the Cabinet source said. The committee will put the final seal on the MoUs to be signed with corporate entities. Innovative funding includes equity participation, leasing and commercial exploitation of lands.
There will be 13 stations in this route: K R Puram Interchange station, Mahadevapura, DRDO Sports Complex, Doddanakundi, ISRO, Marathahalli, Kadubeesanahalli, Bellandur, Iblur, Agara lake, HSR Layout and Silk Board Interchage. It is expected to decongest the area with anywhere between 3 lakh and 5 lakh commuters expected to use it when it gets completed in 2020.