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Bharatiya Janata Party (BJP) MP Tejasvi Surya on Thursday released a detailed breakdown of the funding structure of Bangalore Metro Rail Corporation Limited (BMRCL), addressing concerns over project delays, cost escalations and the division of financial responsibilities between the Central and Karnataka governments.
Addressing a press conference in Bengaluru, Surya countered the Karnataka government's claim that the State bears 84 per cent of the Bengaluru Metro project cost, while the Centre contributes only 16 per cent. He said the State government had also claimed that out of the total expenditure of Rs 77,000 crore, approximately Rs 65,000 crore was being borne by Karnataka. He highlighted that the state government has included the Rs 28,000 crore in loans extended to BMRCL with a sovereign guarantee from the Central government under the Karnataka governments contribution column, instead of accounting for it under the Central governments contribution column. Detailing the corporate and financial structure of the executing agency, the BJP MP said BMRCL operates as an equal joint venture between the Central and State governments, with both holding a 50 per cent stake. "Bangalore Metro Rail Corporation Limited (BMRCL) is a 50:50 joint venture between the Central and state governments. The Central government holds a 50 per cent stake, and the Karnataka government holds the remaining 50 per cent. This is the companys shareholding pattern," he said. He emphasisied that both the Central government has contributed Rs 9,164 crore in equity, matched equally by the state government. Beyond equity contributions, new metro projects rely heavily on international loans. "The Central government has contributed Rs 9,164 crore in equity, and the state government has contributed an equal amount through equity. Apart from this, the primary source of funding for new projects is international loans," he said. Because BMRCL acts as the Special Purpose Vehicle (SPV) for execution, the Central government provides sovereign guarantees to facilitate these international borrowings, enabling the financing of ongoing and future expansions. "To facilitate these loans for BMRCL, which is the Special Purpose Vehicle (SPV) executing the Metro projects, the Central government provides sovereign guarantees for the international borrowings. With the help of these loans, BMRCL is able to finance and execute its Metro projects. This is the funding structure of BMRCL," Surya said. Surya held the Karnataka government accountable for delays in the Bengaluru Metro Red Line project, accusing the administration of casual planning and disregarding approval protocols. "If another elevated corridor is being planned without proper critical assessment, how can a responsible Central government approve a proposal submitted by the state government? One of the major concerns is the lack of integration with the Metro," he said. Citing the provisions of the Metro Memorandum of Understanding (MoU), the BJP MP emphasised that the state government is mandated to align public transport initiatives with the Comprehensive Mobility Plan and the Integrated Master Plan. "As per the Metro MoU, which I have also quoted in the document, the state governments responsibility is to ensure that every public transport project is aligned with the Comprehensive Mobility Plan and the Integrated Master Plan. Under which Integrated Master Plan are they undertaking these projects? How are they planning projects so casually every day?" he asked. Surya criticised the sluggish pace of execution of the Pink Line and soaring construction expenditures. "Now, look at the story of the Pink Line. Bengaluru Metro has reached a stage where it has one of the highest construction costs and is progressing at a pace of just around one kilometre a year. Which other Metro system in the world is in this situation? Why has Bengaluru Metro reached this state, particularly with regard to the Pink Line?" he asked. Surya further maintained that official records and government websites clearly reflected the funding and loan distribution structure of BMRCL, reiterating that the project operates through a 50:50 partnership between the Centre and the State. Clarifying the issue of loans extended to the corporation, he said, "The loan was not given to the Karnataka government. It was extended to BMRCL." He also accused the State government of presenting misleading financial figures and questioned the claims made by its ministers and the Chief Minister regarding the Centre's contribution to the Metro project. "When the official records and BMRCLs approved plan make the position so clear, how can the state ministers and the Chief Minister have the audacity to hold a press conference and mislead the people of Karnataka?" he asked. (ANI)
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