BENGALURU: The much-awaited green signal from the State Cabinet to fund its share of the revised cost of Rs 40,614 crore of the Bengaluru Metro Phase-2 project failed to come through earlier this month. This has sent alarm bells ringing at Bangalore Metro Rail Corporation Limited (BMRCL).
The escalation of nearly Rs 10,000 crore for the 75.06-km network needs to be borne equally between Karnataka and the Centre. However, the delay in funding approval for the increased cost has the potential to severely impact Phase-2, which is racing towards the finish line of December 2026, say multiple sources.
Phase-2 consists of four extensions of the Phase-1 network, apart from two new lines, the 19.15-km Yellow Line from RV Road to Bommasandra via Electronics City, and the 21.26-km Pink Line from Kalena Agrahara to Nagavara. The original deadline of 2020 for the project (approved in 2014) has now been pushed to December 2026.
A source told TNIE, “The cost of Rs 30,695 crore shot up to Rs 40,600 crore with a surge in land acquisition costs, pandemic-induced delays and fluctuation in international currencies, among other reasons. We had submitted the revised funding proposal to the State government in September this year for its nod, and the Finance department okayed it. However, three months down the line when we were confident of the release of funds, we learn the Cabinet has deferred its approval.
This is a big blow to BMRCL as it will have to start making multiple payments shortly. Of the escalated cost, Karnataka needs to bear half the cost of Rs 5,000 crore and the Union government an equal amount. Only after the green signal is given by the state can we get the consent of the Centre.”
Law and Parliamentary Affairs Minister HK Patil had informed the media after the Cabinet meet on December 6 that additional details had been sought in connection with the revised cost, without sharing details. He added that the issue would be considered later.
It is understood that the acute cash crunch faced by the government, thanks to free bus travel for women and other subsidies, is finally impacting the much needed funding for this crucial project aimed at removing traffic congestion towards Electronics City and Dairy Circle.
Another source told this reporter that payment needs to be made for equipment as well as contractors shortly for the Yellow Line and Pink Line. “Underground civil works are in progress on the Pink Line and multiple contractors need to be paid soon, signalling and telecommunication equipment needs to be purchased and installed, Automatic Fare Collection gates, lifts and escalators need to be procured and put in operation, stage payments have to be made for rolling stock for China Railway Rolling Stock Corporation for the Bommasandra line, and later BEML for Diary Circle line,” he explained.
A top official concurred, “Unless the State gives its nod and releases funds urgently, we are staring at a big crisis. The lines cannot become operational within two years. For the first time in BMRCL’s history, funding is going to become an issue.”