In a novel and potentially controversial move, the Karnataka government proposes to partfund the second phase of the Metro by levying a fresh cess on residents and business establishments in the vicinity of the upcoming Metro Rail network.
The urban development department (UDD), the nodal state government agency for the Metro, has proposed a cess to be levied at 5% of the market value of land and building in future developments, new layouts to be credited to Metro Infrastructure Fund. This will
be shared among BMRCL, BWSSB and BDA equitably.
“The expectation is that such a cess would yield about Rs 1,250 crore over five years with Rs 250 crore coming from residential properties and the rest from commercial establishments,” UDD additional chief secretary K M Shivakumar told TOI.
This is one among the numerous proposals the government has mooted to mobilize Rs 27,000 crore for the 72-km second phase of Metro Rail network. “The Metro Rail will benefit a large number of property owners who will gain from appreciation of land and increase in rentals. It is proposed to introduce enactments to capture a share of the associated value creation and channel them into infrastructure finance,” Shivakumar said.
Further, there is also a proposal to levy cess on additional floor area ratio (FAR) on all properties lying within a distance of 500 metres from the Metro alignment at a rate of 10% on residential properties and 20% on commercial buildings. This cess will be applicable not only for the upcoming second phase of Metro but also for the ongoing phase 1. This is expected to yield Rs 432 crore to the government over a period of five years. BMRC proposes PPP model for new lines
Bangalore: The fund-starved Karnataka government is looking at the public-private partnership (PPP) model to build two new lines of Metro Rail network.
The requirement of funds for the lines (RV Road-Bommasandra and IIMB-Gottigere to Nagavara), cleared by the cabinet on Tuesday, is about Rs 16,758 crore of the total cost tag of Rs 27,000 crore for phase 2 of the project.
For the first time, BMRC is exploring the PPP model for these two lines with respect to systems, rolling stock and O&M. They expect around Rs 6,065 crore by roping in private players. According to the blueprint, the government funds the land acquisition, rehabilitation and utility shifting. The Centre pays up to 20% of the project cost as viability gap fund, and the PPP brings in the rest mainly in rolling stock, the signaling & telecommunication and track.
“The proposal becomes attractive on account of smaller investment for the PPP partner, the ownership of long-term civil works continues to be with the government and the efficiency of private sector in asset utilization could be gainfully tapped,” urban development department additional chief secretary K M Shivakumar told TOI.
The PPP model is being followed for metros of Hyderabad, Mumbai and the Delhi Airport Link. While PPP in Hyderabad and Mumbai Metros is under implementation, it is already operational in Delhi. Civil works of the Delhi airport link are executed by DMRC, whereas the system works, including rolling stock, are executed by the concessionaires.
The BMRC has also proposed differential pricing in fare for two lines __ Bayappanahalli to ITPL-Whitefield and RV Road to Bommasandra __ as the route would pass through Electronics City. “A fare slightly higher than normal could be fixed in respect of certain specified stations for the trips originating or ending in such stations. A higher fare in the peak hours and normal fare in the non-peak hours could be adopted,” he said.
The urban development department (UDD), the nodal state government agency for the Metro, has proposed a cess to be levied at 5% of the market value of land and building in future developments, new layouts to be credited to Metro Infrastructure Fund. This will
be shared among BMRCL, BWSSB and BDA equitably.
“The expectation is that such a cess would yield about Rs 1,250 crore over five years with Rs 250 crore coming from residential properties and the rest from commercial establishments,” UDD additional chief secretary K M Shivakumar told TOI.
This is one among the numerous proposals the government has mooted to mobilize Rs 27,000 crore for the 72-km second phase of Metro Rail network. “The Metro Rail will benefit a large number of property owners who will gain from appreciation of land and increase in rentals. It is proposed to introduce enactments to capture a share of the associated value creation and channel them into infrastructure finance,” Shivakumar said.
Further, there is also a proposal to levy cess on additional floor area ratio (FAR) on all properties lying within a distance of 500 metres from the Metro alignment at a rate of 10% on residential properties and 20% on commercial buildings. This cess will be applicable not only for the upcoming second phase of Metro but also for the ongoing phase 1. This is expected to yield Rs 432 crore to the government over a period of five years. BMRC proposes PPP model for new lines
Bangalore: The fund-starved Karnataka government is looking at the public-private partnership (PPP) model to build two new lines of Metro Rail network.
The requirement of funds for the lines (RV Road-Bommasandra and IIMB-Gottigere to Nagavara), cleared by the cabinet on Tuesday, is about Rs 16,758 crore of the total cost tag of Rs 27,000 crore for phase 2 of the project.
For the first time, BMRC is exploring the PPP model for these two lines with respect to systems, rolling stock and O&M. They expect around Rs 6,065 crore by roping in private players. According to the blueprint, the government funds the land acquisition, rehabilitation and utility shifting. The Centre pays up to 20% of the project cost as viability gap fund, and the PPP brings in the rest mainly in rolling stock, the signaling & telecommunication and track.
“The proposal becomes attractive on account of smaller investment for the PPP partner, the ownership of long-term civil works continues to be with the government and the efficiency of private sector in asset utilization could be gainfully tapped,” urban development department additional chief secretary K M Shivakumar told TOI.
The PPP model is being followed for metros of Hyderabad, Mumbai and the Delhi Airport Link. While PPP in Hyderabad and Mumbai Metros is under implementation, it is already operational in Delhi. Civil works of the Delhi airport link are executed by DMRC, whereas the system works, including rolling stock, are executed by the concessionaires.
The BMRC has also proposed differential pricing in fare for two lines __ Bayappanahalli to ITPL-Whitefield and RV Road to Bommasandra __ as the route would pass through Electronics City. “A fare slightly higher than normal could be fixed in respect of certain specified stations for the trips originating or ending in such stations. A higher fare in the peak hours and normal fare in the non-peak hours could be adopted,” he said.
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