Thursday, March 3 2005 15:59 Hrs (IST) - World Time -

Bangalore: The Karnataka Government today (Mar 3, 2005) accorded approval for the Rs 6,207 crore Bangalore Metro Rail project, giving green signal for commencement of preliminary works by June this year.

The long awaited multi-crore project aimed at decongesting the ever-increasing traffic density, was expected to be completed in about three and half years from the date of commencement of work and the first train would be on track by October 2008, Minister for Information B Shivaram said, after the Cabinet meeting.

The State was optimistic that the Public Investment Board (PIB) and the Cabinet Committee on Economic Affairs (CCEA) would extend the required clearances as soon as possible, he said, adding that, "There are no hurdles in securing Central clearances".

Union Minister for Urban Development Gulam Nabi Azad has assured the State to secure clearances for Metro Rail project by this month end, Shivaram said.

The Union Budget presented by Finance Minister P Chidambaram has already reflected the Centre's commitment to the project by allocating funds under Urban Renewal Programme, he pointed out.

Karnataka would contribute Rs 1,807 crore and Centre Rs 1,447 crore while Rs 2,953 crore would be raised by financial institutions, Shivaram said.

The State has already tied up with the financial institutions for Rs 3,000 crore loan, he said.

Shivaram also said that the Bangalore Metro Rail Transport Ltd (BMRTL) has been directed to go ahead with preliminary works such as planning, designing and acquisition of land, including shifting of certain utilities through which the lines pass.

BMRTL would commence the preliminary works in about three days for the 33-km rail route, which comprised seven km stretch underground, he said.

The BMRTL would also identify and shortlist vendors and contractors for executing the project, he said, adding that, a committee headed by Chief Secretary would monitor and report to the Cabinet once in three months on the progress.

Following delays, the project has suffered cost escalation to the tune of Rs 600 crore, Shivaram said.

On the land requirement, he said that the Defence Ministry has agreed to transfer 102 acres of land under its possession; the Government has 55 acres and would acquire 45 acres from private parties.

It has been estimated that at least 800 structures were required to be acquired for the project, Shivaram said.