BENGALURU: Close on the heels of Cabinet Committee of Economic Affairs (CCEA) approval, the railway board has sanctioned the 148km suburban rail project for Bengaluru with eight conditions.
CCEA on October 7 had okayed the project at an estimated cost of Rs 13,926 crore and completion cost of Rs 15,767 crore. But Union railway minister Piyush Goyal at the press meet had refused to provide any information on the approval citing the model code of conduct in Bengaluru. This is the first time the railway ministry has officially acknowledged the nod.
The project will comprise four corridors: KSR Bengaluru City-Yelahanka-Devanahalli (41km), Byappanahalli-Yeshwantpur-Chikkabanavara (25km), Kengeri-Cantonment-Whitefield (35km) and Heelalige-Yelahanka-Rajanukunte (46km). Of the total cost, the Centre and state will provide Rs 2,479 crore each; Rs 7,438 crore will be loaned from funding agencies.
In a letter to Karnataka Rail Infrastructure Development Enterprises (K-RIDE), an SPV of the railway ministry and state government, the railway board said: “Completion period of the project is six years. However, corridor 1 (Bengaluru City-Yelahanka-Devanahalli with airport link) has been planned for completion within three years after this sanction.â€
This means suburban rail is likely to connect Kempegowda International Airport ahead of Namma Metro’s Silk Board-KR Puram-KIA line, which is likely to be commissioned only by December 2024.
The railway board has set eight conditions for the project. “The procurement, operation (with on-board train staff only) and maintenance of rolling stock should be done in PPP mode,†it said. “K-RIDE shall have autonomy in fare fixation and fare will be kept comparable to Bengaluru Metro...†it further said. The minimum fare could be Rs 13 for less than 3km. In Chennai and Mumbai, a trip for the same distance costs Rs 5. The board also asked K-RIDE to take necessary steps to expedite execution, signing of concession agreement, land acquisition and financial closure.
“The Union railway ministry’s contribution to equity is through budgetary support initially limited to Rs 500 crore. The rest is proposed to be financed through returns from monetisation of railway land. Vacant railway land parcels are expected to generate up to Rs 4,815 crore,†it said.
It further stated that the state government has agreed to grant a Floor Space Index (ratio of total area to built-up area) of 5 on railway land in the corridor’s influence zone. A higher FSI means developers can build more on a given plot by adding floors. “The state government will set up an empowered committee to facilitate railway ministry initiatives for monetisation of its land and timely realisation of benefits for the project,†it said.
“The remaining expected Value Capture Financing from non-railway land to the tune of Rs 2,573 crore, which is expected to come through premium floor area ratio, land use charge and cess on approval of new layout, shall be taken towards non-fare box revenue to repay the debt,†the board said.
It stated the state government and railway ministry will provide their land at nominal lease charges of Rs 1 per acre. The procurement packages will be formulated on engineering, procurement and construction (EPC) basis.