Bengaluru Suburban Rail system to cost Rs 1,000 Crore in Phase-I

Bengaluru Suburban Rail system to cost Rs 1,000 Crore in Phase-I

Railway Minister Suresh Prabhu says corporates will be encouraged to take up projects such as modernisation of railway stations under the aegis of a separate PSU to be floated for development of various Suburban Railway systems in the country.

Bengaluru (SBC): The Rail India Technical and Economic Service (RITES) has submitted a report on a suburban rail project for Bengaluru which has been under consideration for a long time.

In Phase I, the project is expected to cost Rs 1,000 crore. After that, phase II and phase III would be taken up, and a Railway corporation has been formed for implementing this, said Suresh Prabhu, minister for railways.

“It has to be taken to its logical end,” he told reporters, here after flagging off three trains from three different stations remotely.

Prabhu said, corporates will be encouraged to take up projects such as modernisation of railway stations. Private businesses are now mandated to spend 2 per cent of their profits towards CSR. “The firms should be encouraged to spend these funds on improving stations and its facilities,” Prabhu added.

Even as the suburban rail is being mooted for Bengaluru, an Integrated Transport Solution Authority is also being planned for Bengaluru. This, said Prabhu, is because big cities today need an integrated solution to meet the demands of increasing pressures on the transport infrastructure and an agency like that will help better coordinate and thus help improve city’s transport infrastructure.

The Union minister also mooted floating of special purpose vehicles (SPVs) in pact with state governments for the Railways’ modernisation projects and for implementing new ones. “The states will hold equity in them,” he said.

He said, this will also help the Railways increase their revenues. Also, the priority projects of the respective states can be taken up.

“This will ensure that the states will not accuse Centre of discriminating against any state in particular and will generate revenues for states,” Prabhu added.

In case of Karnataka, till now over Rs 24,000 crore worth of projects have been sanctioned and Rs 16,000 crore worth of these projects are being taken up with a 50 per cent contribution from the state.

While stating that the Railways is in a precarious financial condition, he said, all passenger trains are loss-making today, and the Railways subsidises passenger fares by 50 per cent or so. Hence, he said there was an urgent need to find a solution to mitigate the financial condition of the Railways.