Bengaluru suburban rail gets closer to reality as state govt now buckles under poll pressure
Sandeep Moudgal | TNN | Feb 26, 2019, 17:53 IST
Representative PhotoBENGALURU: The state cabinet on Monday cleared the decks for the suburban rail network in Bengaluru by approving the revised conditions for the joint venture of Karnataka government and the ministry of railways.
Under poll pressure, with the intent of not being projected as stalling the key Bengaluru traffic decongestion project, the state cabinet is said to have “mutually” agreed to the revised conditions.
According to sources, the government has agreed to six revised conditions which include bearing the costs for private land acquisitions which may be required over beyond the railways land for the project.
On Tuesday, the state government agreed to the cost of acquisition of private lands with a rider of “minimising it as far as possible”.
Further, the government has also agreed to provide the railways a floor space index (FSI) of five along the entire suburban rail corridor towards the central agency which can be sold by the railways to generate funds.
However, the state government has also put a rider in this condition citing the unused TDR proceeds of the railways will be shared equally between the state government and the Centre to fund the project.
The previous conditions placed by the state government had suggested the cost of private land acquisition would be shared between the state and the Centre, with the FSI being given to the railways only where the central agency had parted with their portion of land.
“With these conditions settled, the suburban rail network can move forward with only the setting up of the SPV pending,” said a UDD official.
The special purpose vehicle (SPV) will now be the next step for the suburban rail network, after the central railway board clears the revised conditions.
The railway board meeting is scheduled for Tuesday evening and the government order issued by the state government will be placed before it for ratification.
Sources state the SPV, K-Ride, has already been provided a seed money by way of equity which is close to Rs 3,550 crore for its operations.
B’luru grants remains pending
While the suburban rail network may have been given the green light, the state cabinet is said to have been unable to clear the Rs 2,300 crore due to the delays in the cabinet meeting.
It is said the subject was kept in abeyance for the next cabinet meeting.
Under poll pressure, with the intent of not being projected as stalling the key Bengaluru traffic decongestion project, the state cabinet is said to have “mutually” agreed to the revised conditions.
According to sources, the government has agreed to six revised conditions which include bearing the costs for private land acquisitions which may be required over beyond the railways land for the project.
On Tuesday, the state government agreed to the cost of acquisition of private lands with a rider of “minimising it as far as possible”.
Further, the government has also agreed to provide the railways a floor space index (FSI) of five along the entire suburban rail corridor towards the central agency which can be sold by the railways to generate funds.
However, the state government has also put a rider in this condition citing the unused TDR proceeds of the railways will be shared equally between the state government and the Centre to fund the project.
The previous conditions placed by the state government had suggested the cost of private land acquisition would be shared between the state and the Centre, with the FSI being given to the railways only where the central agency had parted with their portion of land.
“With these conditions settled, the suburban rail network can move forward with only the setting up of the SPV pending,” said a UDD official.
The special purpose vehicle (SPV) will now be the next step for the suburban rail network, after the central railway board clears the revised conditions.
The railway board meeting is scheduled for Tuesday evening and the government order issued by the state government will be placed before it for ratification.
Sources state the SPV, K-Ride, has already been provided a seed money by way of equity which is close to Rs 3,550 crore for its operations.
B’luru grants remains pending
While the suburban rail network may have been given the green light, the state cabinet is said to have been unable to clear the Rs 2,300 crore due to the delays in the cabinet meeting.
It is said the subject was kept in abeyance for the next cabinet meeting.
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