The Hindu Business Line : Race for the Bangalore Metro

Project highlights
Bangalore Metro to invite price bids for Rs 700-800 crore worth of coach supply soon
Bids to be invited from Alstom, Bombardier, Siemens, BEML-Mitsubishi-Rotem
Plans to raise Rs 1100 crore from domestic market, has appointed UTI Bank as lead banker
The Metro will be built on standard gauge, unlike Delhi Metro that is built on broad gauge

Mamuni Das

Seven consortia, which include Alstom, Bombardier, Siemens, Larsen & Toubro, Mitsubishi and Westinghouse Rail Systems, have lined up for designing, supplying and commissioning the signalling and telecommunication equipment systems for the Bangalore Metro.

Bangalore Metro, branded Namma Metro (‘namma’ means ‘our’ in Kannada), will be built on standard gauge, unlike the Delhi Metro, which is a metro built on a broad gauge.

The project value is expected to be of the order of Rs 400 crore. Additionally, Bangalore Metro Rail Corporation is likely to invite financial bids for its Rs 700-800 crore tender for rolling stock supply in January 2008.

FIRMS IN RACE

“Bangalore Metro, which would follow a two stage bidding process, would come out with the list of technically qualified bidders for the signalling and telecom tender over the next 1-1.5 months,” Mr B.S. Sudhir Chandra, Director-Project & Planning, told Business Line.

Those firms that have submitted bids to design, manufacture, supply, test and commission equipment for signalling and train communication system to Bangalore Metro include a consortium lead by the Indian subsidiary of French firm Alstom, with Thales Security Solutions and Systems and Japanese firm Sumitomo Corporation as members; Bombardier Transportation (lead partner) with Westinghouse Rail Systems and Singapore Technologies Electronics Ltd; Larsen and Toubro (lead partner) with Kyosan Electric and Alcatel Shanghai Bell Company and Siemens Transportation.

Others eyeing the contract are: Mitsubishi Corporation (lead partner), GE Transportation Systems and Hitachi Ltd; and another consortium led by Union Switch & Signal Pvt Ltd with Ansaldo STS and McML Systems Pvt. Ltd as members.

ROLLING STOCK

For supply of rolling stock (117 metro coaches), Bangalore Metro has already technically qualified four bidders: Alstom, Bombardier, Siemens and BEML-Mitsubishi-Rotem consortium. “We hope to invite price bids for the rolling stock supply in January 2008,” Mr Chandra said adding that the project size is likely to be of about Rs 700-800 crore. The coaches will each have a passenger capacity of 356 (50 seating and 306 standing).

LEAD BANKER

Bangalore Metro plans to raise about Rs 1,100 crore of domestic loan. “We have appointed UTI Bank as the lead banker for domestic funds. Several banks have approached us to provide domestic loans at about 7.5-8 per cent cost,” Mr Chandra said. Bangalore Metro, as envisaged, has a total length of 33 km comprising East-West corridor (18.1 km) and North-South (14.9 km) corridor.

The total project cost is about Rs 6,395 crore (2005 prices). It is funded by Rs 1795 crore JBIC (Japanese Bank for International Corporation) loan, apart from equity and subordinate debts by the Central Government and Karnataka Government.

FARES

Bangalore Metro, with a target completion date of five years from start of construction, plans to keep the fares at about 1.4 times the bus fares in the city.

“Compared to the fares charged by air-conditioned bus service — Pushpak — charged by the Bangalore transport corporation, the metro fares are proposed to be about 1.2 times,” Mr Chandra said.