Date of Post : 23 June, 2017
Bangalore: The DULT (Department of Urban Land Transportation) has sent a proposal for setting up of the SPV for implementation of the Rs 11,000 crore (approx US$ 1692.31 Million) suburban rail project in the city.
The state government & the Indian railways, in January this year, signed a memorandum of understanding (MoU) for conversion of diesel-electric multiple units (DEMU) to mainline electric multiple units (MEMU) at the cost of Rs 278 crore (approx US$ 42.77 Million).
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- The MoU also augmented the maintenance facility for MEMU rakes at Banaswadi costing Rs 25 crore (approx US$ 3.85 Million) along with introducing new services during peak hours between Byappanahalli & Whitefield costing Rs 41.2 crore (approx US$ 6.34 Million) taking the total to Rs 345 crore (approx US$ 53.08 Million).
- The suburban rail policy suggests that 20% of the total cost will be shared by the state, 20% by the railways & the rest 60% will be raised through bank loans.
- In March this year, the state government sanctioned 80% of the total Rs 345 crore (approx US$ 53.08 Million) to DULT which leaves 20% of the project cost that needs to be arranged by the railways.
- However, the only work that has been initiated towards the suburban rail network is of augmenting the MEMU maintenance shade at Banaswadi Station.
- But this too has been caught in a limbo because of the absence of the SPV.