Union Finance Minister P Chidambaram on Tuesday promised Chief Minister Siddaramaiah that the Centre will give early clearance to Phase II of Bangalore Metro rail project. At a meeting with Chidambaram here, Siddaramaiah urged him to quickly approve Phase II of the ambitious project.

The finance minister is learnt to have replied that various departments of the Union government were studying the project and the approval would be granted shortly.

Mandatory approval

As the Bangalore Metro project is a joint venture between the Centre and the State government, the former’s approval is mandatory.

Chidambaram also reportedly promised the chief minister that the Centre would encourage industrialists to invest in Karnataka if the State was willing to provide them with facilities, including land.

Siddaramaiah requested Chidambaram to set up a women’s bank in Mysore.

The State would provide land and other necessary facilities for the purpose, he promised.
The chief minister met Union Power Minister Jyotiraditya Scindia separately and promised to provide the necessary infrastructure for the proposed ultra mega power project at Niddodi near Mangalore.

Siddaramaiah evinced interest in purchasing power from Bhutan and said the Centre should facilitate the deal.

At a separate meeting, Union Shipping Minister G K Vasan promised Siddaramaiah that a new port would be developed at Tadadi in Uttara Kannada district.

Union Road Transport Minister Oscar Fernandes promised to visit Bangalore on June 29 for a meeting to review the pending road projects in Karnataka.

Conditional approval

The Union Ministry of Finance has considered clearance for Phase-II of Namma Metro provided the Ministry of Urban Development (MoUD) okays certain clearances, among other things, reports DHNS from Bangalore.

In a press release, the Bangalore Metro Rail Corporation Limited (BMRCL) said that the Public Investment Board (PIB), under the Union Finance Department, considered the approval on Tuesday for Phase-II of the project. The PIB approval is subject to MoUD’s confirmation of availability of funds to finance the Centre’s commitment in the 12th  Five-year Plan.

The BMRCL, which was questioned about the cost of the project by the Planning Commission and the Union Finance Department, came under further scrutiny with the Jayadeva Hospital Junction realignment, as the said decision would only increase the costs. But it refused to review the decision, saying that sticking to realignment was a viable option.

The Corporation also said that the PIB would approve the project if it could confirm that the financial internal rate of return (FIRR) was 6-6.5 per cent in respect of its new arterial lines.