The Union cabinet have given its approval to the second phase of Bangalore Metro Rail Project to improve public transport in the city. The cost of the project was estimated to be Rs.26,405.14 crore at 2011-12 price levels with price escalation of five percent per annum. The project is scheduled to be completed in five years from the date of commencement of work. Out of the total cost, the central government will provide Rs.5,281 crore and Karnataka government’s share will be Rs.8,983 crore.
The balance amount of Rs.12,141.14 crore will be raised through debt. The project will be executed by Bangalore Metro Rail Corporation Ltd – the existing Special Purpose Vehicle (SPV) of central and state governments having 50:50 equity from each.