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The cost-cutting exercise is based on BMRCL’s experience of finishing Phase-1, the 42-km Metro rail network that increased in the project cost from Rs 8,158 crore to Rs 13,845 crore.
“We have done away with general consultants for Phase-2. They charged a lot of money for the first phase,” additional chief secretary (urban development) Mahendra Jain said. This measure alone will help BMRCL save Rs 1,584 crore. “After having finished Phase-1, BMRCL has enough in-house expertise to implement the Metro project,” Jain said.
Foreign talent was an integral part of planning and implementing the first phase of Namma Metro. However, the dependence on foreigners has been “substantially” reduced for Phase-2, authorities say. Also, the BMRCL wants to award 50% of systems contracts supply of equipment to local companies. This measure, authorities believe, will help avoid cost overruns due to fluctuation in foreign currency during import of equipment. Also, BMRCL has decided to standardise the designs of all stations in Phase-2 to achieve “fiscal prudence”.
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