The new policy of innovative funding for Metro Rail projects is already in the planning stage for the BMRCL which is executing the Rs 45,000-crore project here.
In November 2016, BMRC suggested innovative financing for two new lines-along the ORR and to the airport. The ORR line is estimated to cost Rs 4,200 crore, of which Rs 2,000 crore will be raised from private stakeholders including corporates and builders along the corridor. Although some people have raised doubts about it, the Outer Ring Road Companies Association said that many firms and builders, which have built tech enclaves along the ORR, are willing to support the project financially.
The budget talked about greater private participation and investment in construction and operation. BMRC is not considering the PPP model. It prefers to get indirect benefit of private funding. One way is to increase the Floor Space Index of buildings on land around a 1km radius of the Metro, wherein the land value goes up and those who share the land with the project can build extra floors.
The second is to offer the longterm lease of its properties with commercial potential and raise Rs 500 crore. The third is to give firms advertising rights in its stations.
SWR gets 19% more allocation.
The budget has hiked the allocation to South Western Railway for 2017-18 to 19.17%, said SWR GM A K Gupta. "It is more than Rs 200 crore against our expectation of Rs 2,900 crore. The extra funds will be used for line doubling & new line works," he said.
In November 2016, BMRC suggested innovative financing for two new lines-along the ORR and to the airport. The ORR line is estimated to cost Rs 4,200 crore, of which Rs 2,000 crore will be raised from private stakeholders including corporates and builders along the corridor. Although some people have raised doubts about it, the Outer Ring Road Companies Association said that many firms and builders, which have built tech enclaves along the ORR, are willing to support the project financially.
The budget talked about greater private participation and investment in construction and operation. BMRC is not considering the PPP model. It prefers to get indirect benefit of private funding. One way is to increase the Floor Space Index of buildings on land around a 1km radius of the Metro, wherein the land value goes up and those who share the land with the project can build extra floors.
The second is to offer the longterm lease of its properties with commercial potential and raise Rs 500 crore. The third is to give firms advertising rights in its stations.
SWR gets 19% more allocation.
The budget has hiked the allocation to South Western Railway for 2017-18 to 19.17%, said SWR GM A K Gupta. "It is more than Rs 200 crore against our expectation of Rs 2,900 crore. The extra funds will be used for line doubling & new line works," he said.