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CCEA approves Phase-II of Bangalore metro rail

Thursday, 30 Jan 2014

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The Cabinet Committee on Economic Affairs (CCEA) has given its approval for Phase-II of the Bangalore metro rail project in Karnataka.

The project is estimated to cost Rs 26,405.14 crore at price levels of 2011-12 with price escalation of five per cent per annum (including escalation and central taxes and excluding state taxes and duties). In the total project cost, the government of India will have a share of Rs 5,281 crore and the government of Karnataka will have a share of Rs 8,983 crore. The share of the state government includes a grant of Rs 1,689.90 crore. The balance amount of Rs 12,141.14 crore will be raised through senior debt.

The metro rail project will be executed by Bangalore Metro Rail Corporation, an SPV in which the government of India and the state government will have 50:50 equity of each. It is expected to be completed in five years from the date of commencement of work.

Phase-I of the project is under execution and will entail an investment of Rs 11,609 crore.

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