Union Budget 2021: Centre to fund 15% of Bengaluru Metro Phase 2 (A) and 2 (B) projects

Bengaluru: Union Finance Minister Nirmala Sitharaman on February 1 announced the funding for Bengaluru Metro Phase 2 (A) and 2 (B) projects. The project is a 58.19 km stretch from Central Silk Board junction to KR Puram and KR Puram to Kempegowda International Airport and is estimated to cost Rs. 14,788 crore. The Union Government will be funding about 15% of the estimated cost.

Under flagship projects, the Bengaluru-Chennai Expressway’s construction will begin in 2021-2022 as per the budget document.

The allocation to R&D, health, agriculture, education, urban area sanitation, an extension of tax holiday to startups, capital gain exemptions, etc. is expected to boost the economy.

The opposition leaders have criticized the budget for handing the state a raw deal, whereas BJP leaders such as BS Yediyurappa claimed it as a pro-poor and pro-middle class budget.

About the center’s counterpart funding of the total project cost of Rs. 14,778 crore, the centre only funds 15% of the cost, 35% will be raised from multilateral and bilateral development agencies through the Union Government, 35% will be funded by State government and the rest 15% will be raised from the private sector.

Calling the announcement of ORR-Airport Metro a big support for public transport and economic activities in Bengaluru, Ajay Seth, MD, BMRCL asserted that the next two steps for formal approval are consideration and recommendation by the Public Investment Board and approval by the CCEA.

He further informed that MoHua working to get these two steps completed within March 2021.