Bengaluru: Suburban rail chugs in, who'll bear cost?
A slight friction exists between the Centre and state on the issue of cost sharing.
Bengaluru: The South Western Railways, Bengaluru division took baby steps to starting the much-sought-after suburban railway system by signing an MoU with the state government on Monday.
Railway Minister Suresh Prabhu, who was in the city for the ceremony, said that the project will be implemented on a cost-sharing basis. However, a disagreement persisted between the state and central governments on who would shell out how much. While the Centre wants the state to bear 80 per cent of the cost, Chief Minister Siddaramaiah is rooting for a 50:50 split. The Phase-1 of suburban rail is estimated to cost Rs 2,500 crore and will be take at least another year to take off, officials said.
Suburban rail cost: State, Centre clash
“The Karnataka government and Railway Ministry have agreed to build the suburban rail infrastructure in Bengaluru. The financing will be done through innovative means and not the budget. There will be a Special Purpose Vehicle (SPV) that is a separate department to look after suburban rail," announced Minister of Railways Suresh Prabhu, and added that the project will be funded by 'leveraging the market'.
A slight friction exists between the Centre and state on the issue of cost sharing. While the Railway Ministry has stated in the draft that 80 percent of the cost will come from the state, Karnataka feels otherwise.
Chief Minister Siddaramaiah said, "I request the Railway Ministry to modify the draft policy. 80 percent will be a huge burden on Karnataka. I appeal for a 50:50 cost sharing. Rs 100 crore has been allotted in the state budget, for suburban rail, this year. If more is needed, we are ready."
Citing the expensive land rates in the city, Mr Siddaramaiah said, "I request the Railway Ministry to share the land cost as well. We will also put in efforts to bring in private participation for innovative financing."
Mr Prabhu said, "Once this is implemented, 78 lakh four-wheelers and 48 lakh two-wheelers will go off the roads and will help reduce congestion. The MoU has been agreed in principle. Bengaluru needs it not because it is the capital of Karnataka, but because it is the Tech Capital of India."
Union Minister for Statistics D.V. Sadanada Gowda, Union Minister for Chemicals and Parliamentary Affairs Ananth Kumar, Minister of Large and Medium Scale Industries R.V. Desphande and Bengaluru Development Minister K.J. George were present.
Members of the Citizens for Bengaluru (CfB), the civilian group that pressured the government to implement the suburban rail, were present. Their campaign Chukubuku Beku finally saw success with the release of the MoU. An ecstatic group of CfB volunteers were seen cheering and applauding at the event. They later personally thanked the officials.
CfB members worked hard to make it happen
Members of the Citizens for Bengaluru worked tirelessly to put pressure on the authorities for the suburban railway system in the traffic-choked city. As Railway Minister Suresh Prabhu's visit to the city drew near, they urged all their volunteers to get the support of their ward corporators. Over 50 corporators representing a total of 30 lakh people signed a letter addressed to Mr Prabhu. Over 25,000 online signatures were also included.
Tara Krishnaswamy of Cfb said, "We celebrate the success of this citizen movement. We need to keep our efforts for a full fledged suburban train system and ensure adequate funds are allocated." The suburban rail system will aid the 1.2 crore people in the city, reducing congestion by 50 percent and also improve air quality, the group believes.