Centre-state JV to execute B'lore metro project

The Rs 6,395 crore Bangalore metro rail project, which was first proposed in 1982, will now be implemented for a 33-km route by Bangalore Metro Rail Corporation (BMRCL) - a joint venture between the central and the state government, sources said.

BMRCL is now wholly-owned by the state government of Karnataka, and the plan is to enhance the authorised capital of the joint venture, sources added.

While the state govenrment will hold 30% stake (15% each of equity and subrodinate debt) in MBRCL, the centre will hold 25% (15% equity and 10% subordinate debt). The remaining 45% would be raised as senior-term debt.

The union cabinet had already given its nod in April this year for the project that is expected to be completed by 2011.

As part of approval by the union urban develpoment ministry, the BMRCL board will also be reconstituted with 10 directors and each promoter appointing five directors.

Sources said that secretary of the union urban development ministry will be the chairman of the board while the state government will appoint the managing director with consent from the centre.