Currently BMRCL has been implementing the first phase of metro rail project that is expected to complete by December 2011 at an estimated cost of Rs 6,395 crore to provide rail facility for a stretch of 33 km inside the city. The first phase would cover the East-West corridor stretching 18.10 km and North-South corridor running 14.90 km.
Now, BMRCL has prepared an extension programme, to be incorporated in the first phase itself, to add another 5.6 km extension on northern side of Bangalore and 3.2 km towards southern side of the city (total 8.8 km) at an estimated cost of Rs 1,763 crore. The proposal has been sent to the Karnataka government for the Cabinet approval, said an official attached to BMRCL requesting anonymity. Immediately after the state's clearance, BMRCL will send the proposal to the to the Union ministry of urban development for the final concurrence to carry out extension work. BMRCL official said the proposal sought the Centre and State governments to provide equity of 15% each in the Rs 1,763 crore worth extension work. In addition, it also sought for subordinate debt of 10% from the Centre and 15% from the state government. In the remaining 45%, the BMRCL expects 28% from Japan Bank of International Cooperation (JBIC) and plans to raise 17% through local financial institutions.
A similar fund structure was adopted in Rs 6,395 crore worth first phase main metro rail project, for which the JBIC had already cleared around Rs 1,795 crore under a special rate of interest. However sources said BMRCL should convince JBIC to get funds for its new extension work as it would be completely an elevated structure. The official said that getting funds from JBIC will be easier for underground rail work than for the elevated ones.
In the case of main project comprising 33-km, under ground stretch was 6.7 km and elevated structure was for 26.30 km. The JBIC has funded for all under ground works, tunnels and stations including ventilation and air-conditioning, signaling, train control and communication, automatic fare collection system and general consultancy services in the main project. The proposed 8.8-km extension work would be fully an elevated rail network, hence BMRCL should convince in proper manner to get funds from the JBIC. However he said,It is not that JBIC will fund only for under ground structures, but it would seek several clarifications before sanctioning funds for elevated structures.