Namma Metro: BMRCL Inks $500 Million Funding Deal With ADB For Under Construction ORR Metro, Achieves Financial Closure For Rs.14,844 Cr Project

by Swarajya Staff - Aug 20, 2021 02:34 AM
Namma Metro: BMRCL Inks $500 Million  Funding Deal With ADB For Under Construction ORR Metro, Achieves Financial Closure For Rs.14,844 Cr ProjectA Namma Metro train. (Photo credit: Manjunath Kiran/AFP/GettyImages)
Snapshot
  • The Bangalore Metro Rail Corporation Limited (BMRCL) has signed an agreement with the Asian Development Plan (ADB) for a $500 million (Rs 3,643 crore) loan to fund the construction of Namma Metro's airport corridor. In March this year, it secured a $318 million (Rs 2,317 crore) loan from the Japan International Cooperation Agency for the project.

    The 56 km “ORR-Airport Metro”, will connect Central Silk Board Junction to Kempegowda International Airport, Bengaluru Terminals via KR Puram and Hebbal. The ORR-Airport Metro will be build at a cost of Rs. 14,844 Crore and will eventually serve 16 lakhs commuters daily.

The Bangalore Metro Rail Corporation Limited (BMRCL) announced on Thursday (Aug 19) that it has signed an agreement with the Asian Development Plan (ADB) for a $500 million (Rs 3,643 crore) loan to fund the construction of Namma Metro's airport corridor.

By inking the ADB funding deal, BMRCL has realised the target of raising Rs 5,960 crore through loans from multilateral or bilateral agencies. In March this year, it secured a $318 million (Rs 2,317 crore) loan from the Japan International Cooperation Agency (JICA).

The state and union governments will contribute Rs 3,973 crore in equity and subordinate debt. Karnataka will pay an additional Rs 2,762 crore for land acquisition.

The 56 km “ORR-Airport Metro”, will connect Central Silk Board Junction to Kempegowda International Airport via KR Puram and Hebbal. The ORR-Airport Metro will be build at a cost of Rs.14,844 Crore and will eventually serve 16 lakhs commuters daily.

The ORR-Airport Metro project will comprise of two new metro lines (Phase 2-A and Phase 2-B), mostly elevated, with a total length of 56 km along Outer Ring Road (ORR) and National Highway 44 between Central Silk Board and Kempegowda International Airport. The line will include 30 metro stations that will provide multimodal facilities, such as bus bays, taxi stand, motorcycle pools, and pedestrian walkways and bridges will be build under the project.

Phase-2A Already Under Construction

Mumbai-based Afcons Infrastructure Ltd. and Bengaluru-based Shankaranarayana Constructions Pvt. Ltd, emerged as the lowest bidders to construct the 18.236 km Central Silkboard – KR Puram (Phase 2A) project of the 57 km Blue Line.

BMRCL issued work order to both the companies in May after which they commenced the construction.

Afcons Infrastructure Limited will be executing the first package of Phase 2A— 9.8km elevated section with six stations (Central Silk Board Junction, HSR Layout, Agara Junction, Iblur Junction, Bellandur, Kadubeesanahalli and construction of a 2.8m flyover at Central Silk Board). The package is valued at Rs.785 crore.

Shankaranarayana Constructions Pvt Ltd is constructing the second package — 9.7km elevated section with seven stations (Kodibisanahalli, Marathahalli, ISRO Layout, Doddanekkundi, DRDO Sports Complex, Saraswathi Nagar (Mahadevapura) and KR Puram and a 2km link line to Byappanahalli depot). The package is valued at Rs.623 crore.

Phase-2B Likely To Commence Early 2022

Phase-2B that will cover remaining 37 Km stretch from KR Puram to International Airport in Bangalore City. Bids for construction of the 37 km Airport ORR -Airport Metro line were invited in July this year and the last date for submission was has been extended twice due to the pandemic related disruptions. The current submission deadline is December 22.

Almost two-thirds of the 94 acres of the land required for the ORR-Airport Metro has been acquired and handed over to BMRCL. The balance land is mostly for the metro depot near the Trumpet Junction. The shifting of the utilities, namely electricity, water, streetlights, gas and telecom is underway by the concerned agencies.

Bengaluru Outer Ring Road - A Residential And IT Hub

ORR is among the densest corridors in the IT capital of India. It is dotted with major IT Parks that houses major companies such as Intel, AOL, Cisco Samsung, Google. According to a report by international property consultants Cushman & Wakefield IN 2017, the ORR submarket alone accounted for a whopping 54 per cent of the 12.7 million square feet net absorption of office space during the year 2017, distantly followed by the peripheral east submarket comprising of Whitefield.

In addition to the preponderance of tech giants , major residential complexes and apartments have also sprung up. This consequently makes it the city’s most congested road. ORR also acts as a link road connecting traffic between the Kempegowda International Airport (KIA) and the major IT hubs at Electronics City and Whitefield.

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