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Metro To Bengaluru Airport Hits Funding Barrier: BMRCL Seeks Loan, Central Aid After UDF Plan Falls Through
Bengaluru Metro (Facebook)
The Bangalore Metro Rail Corporation Limited (BMRCL) is planning to seek a loan of 500 million dollars to gain momentum on the airport metro project, Deccan Herald has reported. The BMRCL is also requesting Rs 500 crore aid from the centre after its proposal of raising funds through the User Development Fee (UDF) fell through.
Managing Director of BMRCL, Ajay Seth said the corporation is seeking the $500 million with moderate interest rates, with a long-term loan, upto 20 years. He adds the formal request of the loan needs to pass through the Union Government. “We have held a discussion with the Asian Development Bank (ADB). The request is yet to be sent to the Union government,” he said.
The BMRCL needs funds for the project after the Airports Economic Regulatory Authority (AERA), had blocked the proposal of raising Rs 1,000 crore by using the UDF, ruling that it can be used once after metro services begin.
As per the new metro policy, the Union government need to finance ten per cent of the cost of the project by raising funds through innovative financing models.
The corporation will also seek Rs 500 crore from the centre as per the new metro policy, where the Union government will provide 10 per cent of the cost for a project, raising funds through innovative financing models.
The cabinet had approved the state government’s financial plan of pitching in with Rs 1,250 crores and the centre providing 8.40 per cent of the cost of the project.
The airport metro is likely to connect a line with Hebbal, instead of Nagavara according to a revised plan.
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