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The Bangalore Metro Rail Corporation Ltd (BMRCL) has decided against partial public-private partnership (PPP) in operations, including track, signalling and rolling stock, for two new lines in the metro rail project, Namma Metro Phase 2.
The State Government, while giving in-principle approval for Namma Metro Phase 2 on January 3 last year, had suggested exploring the possibility of PPP for operations on the new lines, Gottigere-IIMB-Nagavara and R.V. Road Terminal-Bommasandra. The estimated cost was Rs 6,000 crore for the private partner.
Delhi experience
BMRCL Managing Director N. Sivasailam said the BMRCL Board has decided against going for PPP. Asked whether the decision was prompted by the PPP experience of Delhi Metro Rail Corporation Ltd., in Delhi Airport Metro Express Line, Mr. Sivasailam said the board could have considered that also.
He said, “The Board considered the option in detail based on the favourable recommendations of the management to experiment with the option, and decided after considering all aspects, not to go for it unless the institutional viability of Delhi airport line and that of Hyderabad and Gurgaon Metro are established for a reasonable period.”
The government, based on the detailed project report (DPR) prepared by DMRCL for Phase 2 of Namma Metro, had given in-principle approval for the project at an estimated cost of Rs 26,405 crore. Phase 2 involved two extensions – Byappanahalli to Whitefield and Mysore Road Terminal to Kengeri on the East-West corridor of Phase 1 and Hessarghatta Cross to Manjunathanagar and Jaraganahalli Cross to Anjanapura on the North-South Corridor. Two new lines were also proposed to be taken up under this phase.
Bad example
The Delhi Airport Metro Express Line (DAMEL) where DMRC had built the infrastructure and Reliance Infrastructure Ltd-led Delhi Airport Metro Express Pvt Ltd was in-charge of operations, had run into rough weather during the second half of 2012. Operations were suspended for over six months and the line was opened with a limited speed of 50 kmph last week.
Operations were suspended citing safety concerns with regard to some pillars on the 23-km route from Connaught Place to Terminal 3 of Indira Gandhi International Airport. While DMRC had alleged that the private partner intended to get out of the contract because of poor returns, the DAMEP had denied the same. But the private partner had stated that the licnece period (30 years) was too short to leverage real estate potential of the stations and depots.
Under examination
Sources in the Union Urban Development Ministry told said the BMRCL Board’s proposal not to go for partial PPP in Phase 2 is under examination. “We’ll examine the proposal in detail and take a decision on the same before giving final clearance for Namma Metro Phase 2," a top official of the Ministry said.
Asked about the timeframe for clearing Namma Metro Phase 2 proposal, the official said feedback from different Ministries concerned was solicited and the same had been forwarded for BMRCL’s comments.
“We are expecting the decision (on clearing Phase 2 proposal) very soon,” the official said.
On Ministry’s views over PPP in Metro Rail projects, the official said it appeared not very successful, based on Delhi and Hyderabad experiences. However, PPP has been successful in water supply, sanitation and some other sectors, the official said.
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