High Speed Train to BIAL to be ready by mid-2012

Work on the high-speed rail link from M G Road to Bengaluru International Airport (BIA) is all set to begin between December 2008 and February 2009. The Delhi Metro Rail Corporation (DMRC), which will bring this facility to Bangalore, has already invited bids and will issue an expression of interest (EOI) in the next 10 days.DMRC managing director E Sreedharan told reporters that the contract to build the rail link will be given to the bid winner within 6 to 8 months of issue of EOI. Work is scheduled to conclude by mid-2012. The Detailed Project Report (DPR) has been accepted by the state government and a separate corporation for the rail link will be set up. The state government, BIA and AAI will be part of this corporation. The train, traversing 33 km in 25 minutes, will have tickets priced between Rs 150 and Rs 250. The 6-coach train can transport 750 people every trip and have check-in at M G Road and Hebbal, with stops only at Hebbal and Yelahanka. Sreedharan said DMRC has worked out the project so that there is no conflict with the planned elevated expressway from Hebbal to Yelahanka. The total cost is Rs 3,500 crore. The DMRC study also reveals that companies investing Rs 3,500 crore in the project will get back all their money. The companies will start making profit after five years of the project and everything from then over the next 25 years will be their income. We understand that at the end of 30 years, when the companies transfer the ownership of the rail link to the government, they would have made profits at 18% interest.The government gets revenue from taxes on income of the companies and other taxes that come into play. The government will not lose a paisa because it’s not investing anything and will get the rail link free at the end of 30 years. The link will be a success in the PPP format because there is scope for levying high fares. Ticket price of Rs 200 to Rs 250 makes it attractive for private parties. The higher ticket price is an assurance that there will be income. As the link is meant largely for air passengers, high prices can and have to be charged. It can only work in this mode. The link will be completed quickly as land acquisition is not a major problem.As most of the link will be in the middle of the road, we don’t have to worry about land. NHAI would have to work that out, a reason why the expressway could take time.Land for the depot to park the trains is ready — 25% hectares just outside BIA have been identified and surveyed for DMRC. The land is flat and not being used for agriculture.