Malaysian group offers to fund 90% of metro rail

According to the consortium, they are willing to fund upto 90 per cent of the total project cost of Rs 6,000 crore and claimed that they will raise the money without any government guarantees.

KKTS has sought two months to undertake a due-diligence study and submit a techno-financial proposal which will enable the government to evaluate and take a decision accordingly. The proposal also seeks a 30-35 year concession period after commissioning of the project.

The consortium has proposed that it is willing to follow the alignment and route plans already given for the Metro project and will stick to the deadlines already arrived at.

Syed Saahil Saif, MD, KKTS said: "The proposal made by us means, there is minimal financial burden on the government. We are even willing to convert the expenses already borne by the government into equity."

The consortium claims to have experience in managing two similar metro rail projects in Kaula Lumpur.

The proposal from the consortium comes after a Japanese group of firms put up a proposal along similar lines. The state government is yet to decide on any such offer.

According to plans drawn out by Bangalore Mass Rapid Transit Limited the metro project will be 33 km long and have two corridors, east-west and north-south.

While the east-west corridor will be 18.1 km, the north-south corridor will be about 14.9 km in length. Out of the 33 kms, 6.7 km is proposed to be underground and 26.3 km will be elevated.

Wheat and the chaff

Among the various options the consortium has put forward is one involving the barter of wheat corresponding to 65 per cent of the project cost.

The group has said that they are willing to fund 90 per cent of the project and manage it on an annuity basis. In turn, it has asked the state government to go in for a barter deal for exchange of wheat over 19 years.

The consortium has asked for 5 lakh metric tonnes every year over 19 years. In addition to this, the consortium has asked for a supplier guarantee for the wheat.