A crucial meeting between the State government and South Western Railway (SWR) on the suburban rail project, chaired by Chief Minister H.D. Kumaraswmay, was held here on Thursday.

Deputy Chief Minister G. Parameshwara told reporters that another meeting will be held to resolve issues — such as cost sharing, overlapping with the metro project, linking the suburban rail with satellite towns, and rate of return — which came up for discussion on Thursday. The SWR, in a press release, maintained that the State government is yet to accept the feasibility study report which was submitted to the infrastructure department on December 4 by it.

The SWR said in the meeting on Thursday, it was agreed that the DPR will be cleared by the government subject the Railways providing land for free, wherever available.

It said the SWR has already agreed to provide 650 acres of land for the project. The SWR also said the government has agreed to clear the DPR for further processing by January 6 and set aside funds for the work in the budget to be presented in February.

Chief Secretary T.M. Vijay Bhaskar told The Hindu, “The CM has told the Railways that the stand of the government will be conveyed as early possible.”

The government expressed concern that the rate of return is very less at 1.3%. The Railways said, “The primary purpose of the project is to facilitate commuting and easing traffic congestion. All over the world, rate of return for mass transportation system is not very encouraging as economic factors are secondary.”

The government also felt that the project caters to the needs of only Bengaluru. However, the SWR said satellite towns up to Tumakuru, Mandya, Rajanunte, Hosur, and Whitefield are covered.

Under phase II, the BMRCL is building road-cum-metro rail flyover between Ragigudda and Silk Board to ease the traffic as part of R.V. Road–Bommasandra line.

The proposed suburban rail, at some places, will see three-tier corridors: suburban rail in the first, metro rail in the second, and road in the third.