With Rs.100-crore funding for Kadubeesanahalli station on ORR line, Embassy Group is the first corporate company to be part of the innovative funding model for Namma Metro.
BANGALORE: Kicking off its innovative financing model, the Bangalore Metro Rail Corporation Ltd (BMRCL) on Friday signed a memorandum of understanding (MoU) with the Embassy Group to build the Kadubeesanahalli Metro station.
Under the agreement, Embassy Group will pay Rs 100 crore to BMRCL in instalments. The group is the first corporate to sign the agreement under the public-private partnership scheme.
The station, to be located just outside the Embassy TechVillage on the Outer Ring Road, will be on the recently approved 17-km North-South Metro corridor linking Silk Board Junction with Krishnarajapuram.
The construction, according to the group, will be done in accordance with the façade designs and specifications approved by BMRCL. The period of concession and permission granted to Embassy Group will be for 30 years starting from the date of commencement of commercial operations and could be extended further on mutual terms.
The agreement mandates that the group will maintain Kadubeesanahalli Metro station, including housekeeping and maintenance, along with all the equipment, according to specifications laid down by the corporation.
“This move will help the park users greatly, as there will be a ramp access directly to the Metro station from Embassy TechVillage, and a dedicated access from the exit point of the station,” the group said in an official release.
The partnership also means the group will be entitled to utilise the pre-determined spaces for advertisements. “Embassy can also use the leasable retail space measuring approximately 3,000 sq.ft at the Metro station. Embassy will also have the advantage of leveraging the linear zone of 250 metres around the Kadubeesanahalli Metro station,” the release said.
The new Metro line will run between Central Silk Board in the south and Krishnarajapuram in the north. The Rs 4,202-crore project is being taken up under Phase 2A of the Namma Metro network and will have 13 stations covering the entire ORR IT corridor. To be completed in three years, the project is expected to benefit nearly 4.5 lakh people who work on this stretch. The ridership is projected to eventually grow to six lakh every day. The average speed of road travel on this stretch is currently 10 kmph. This is likely to increase to 34 kmph once the Metro is in place.
BMRCL had identified and invited private entities and companies to sponsor up to 25% of the total project cost. This was to pool funds as well as get corporates to participate in faster funding and completion of transportation projects.
Pradeep Singh Kharola, MD, BMRCL: The MoU signed between BMRCL and the Embassy Group is part of the innovative financing push by Namma Metro and we strongly believe that it will encourage corporates to come forward and contribute in developing the urban infrastructure and build a well-equipped modern city.