CAG Flags Planning And Land Acquisition Issues In Bangalore Metro
Commercial operations of Phase one began from October 2011 and became fully operational in June 2017 over 42.30 kilometres. Phase two ran partly between January 2021 and March 2023 over 27.36 kilometres, with the balance planned for completion by December 2026. The audit reviewed progress up to March 2023 for selected contracts.
The audit found that Phase two detailed project reports were prepared without a comprehensive mobility plan, transit oriented development or land use policy. It observed that actual peak hour peak direction traffic for Phase one in 2021 ranged from 6,429 to 8,852 and that ridership used for financial and economic internal rates of return appeared to be overestimated. The report noted that no detailed study was undertaken to ascertain reasons for low ridership.
On land management the audit recorded that BMRCL acquired 62.67 hectares against 45.24 hectares projected for Phase one and 145.16 hectares against 165.09 hectares projected for Phase two. It estimated an increase of Rs 66.03 bn in land acquisition cost and excess land compensation of Rs 2.95 bn.
The audit noted additional compensation of Rs 1.87 bn paid as interest at 12 per cent due to delayed notifications and that taxes in estimates of nine civil contracts raised project cost by Rs 12.22 bn. It highlighted that BMRCL remained dependent on the Karnataka government to service debt because of insufficient revenue and persistent cash losses.
During 2016-17 to 2022-23 actual farebox revenue was Rs 17.58 bn against projected revenue of Rs 77.37 bn. The audit attributed low ridership to non-integration with BMTC, inadequate last-mile connectivity and insufficient parking and observed that 0.223 mn sq ft of 0.246 mn sq ft of built-up area at stations remained vacant, costing Rs 385.3 mn.