SPV for Bengaluru Suburban Rail yet to take off as State Govt and Railways are yet finalise on Cost Sharing


SPV for Bengaluru Suburban Rail yet to take off as State Govt and Railways are yet finalise on Cost Sharing

The special purpose vehicle (SPV) to implement the suburban railway is yet to take off as the state government and railways are yet to see eye to eye on some pertinent issues.

More than a year after signing a memorandum of understanding (MoU) to build a suburban rail network in the city, the SPV, which has to drive the project further, has remained at the level of discussions. While the Railway Board is yet to decide on sharing costs, the state government seems to be in a bind over financing old projects sanctioned by the railways.

In April, the state government urged the railways not to include two doubling works (Baiyappanahalli-Hosur and Yeshwantpur-Channasandra) worth Rs 546 crore in the project. The Railway Board replied last month “requesting” the state to share 50% of the cost.

“We requested them to exclude these works considering that they were old projects sanctioned in the railway budget. The government will reconsider the railways’ request,” said Department of Urban Land Transport (DULT) commissioner Darpan Jain. Read More

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