<p>If all goes well, the suburban rail corridor to airport will be completed in three years with the Railway Board making it official that the line was a top priority for the project, which will rely on value capture financing and public private partnership.</p>.<p>In an office memorandum issued recently, officials put the cost of the project at Rs 15,767 which will be funded by the state and Ministry of Railways with 20% equity each. However, after providing Rs 500 crore through budgetary support initially, the railways has said, the rest will be financed through monetisation of the railway land.</p>.<p>Under the value capture financing framework, the railways hopes to generate Rs 4,815 crore through vacant railway land parcels. "The remaining expected VCF from non-railway land to the tune of Rs 2573 crore, is expected to come through premium FAR, betterment levy, land use charge and cess o approval of new layout shall be taken towards on-fare box revenue to repay the debt ," the memorandum said.</p>.<p>The state government has to set up an empowered committee to facilitate the railways' initiative for monetisation of its land. In a welcome move, the railways has offered to provide its land at a nominal lease charge of Re 1 per acre.</p>.<p><strong>PPP must</strong></p>.<p>One of the condition for approval from the board involves bringing a private player into the project through public private partnership (PPP).</p>.<p>"Procurement, operation (with on board train staff only) and maintenance of rolling stock should be kept on PPP mode," the condition said.</p>.<p>The Rail Infrastructure Development Company Karnataka Limited (KRIDE), the SPV implementing the project, has been given a deadline for building all four corridors. Interestingly, KRIDE officials have already invited bids for consultancy services to assess the land and station development.</p>.<p>Urban transport activist Sanjeev Dyamannavar noted that the building of the airport line should be complemented by the completion of long-pending smaller projects like doubling of the Byappanahalli-Channasandra and Yashwantpur-Hosur line.</p>.<p>"Along with the airport line, the upcoming terminal at Cantonment station will become a game changer provided that the smaller projects are completed," he said.</p>
<p>If all goes well, the suburban rail corridor to airport will be completed in three years with the Railway Board making it official that the line was a top priority for the project, which will rely on value capture financing and public private partnership.</p>.<p>In an office memorandum issued recently, officials put the cost of the project at Rs 15,767 which will be funded by the state and Ministry of Railways with 20% equity each. However, after providing Rs 500 crore through budgetary support initially, the railways has said, the rest will be financed through monetisation of the railway land.</p>.<p>Under the value capture financing framework, the railways hopes to generate Rs 4,815 crore through vacant railway land parcels. "The remaining expected VCF from non-railway land to the tune of Rs 2573 crore, is expected to come through premium FAR, betterment levy, land use charge and cess o approval of new layout shall be taken towards on-fare box revenue to repay the debt ," the memorandum said.</p>.<p>The state government has to set up an empowered committee to facilitate the railways' initiative for monetisation of its land. In a welcome move, the railways has offered to provide its land at a nominal lease charge of Re 1 per acre.</p>.<p><strong>PPP must</strong></p>.<p>One of the condition for approval from the board involves bringing a private player into the project through public private partnership (PPP).</p>.<p>"Procurement, operation (with on board train staff only) and maintenance of rolling stock should be kept on PPP mode," the condition said.</p>.<p>The Rail Infrastructure Development Company Karnataka Limited (KRIDE), the SPV implementing the project, has been given a deadline for building all four corridors. Interestingly, KRIDE officials have already invited bids for consultancy services to assess the land and station development.</p>.<p>Urban transport activist Sanjeev Dyamannavar noted that the building of the airport line should be complemented by the completion of long-pending smaller projects like doubling of the Byappanahalli-Channasandra and Yashwantpur-Hosur line.</p>.<p>"Along with the airport line, the upcoming terminal at Cantonment station will become a game changer provided that the smaller projects are completed," he said.</p>