600-crore funding row stalls mega transit centre

The financial bidder for the 1,800-cr project has sought a viability gap funding of 600 cr,but transport minister R Ashoka says its not an option for the govt;hopes the issue will be resolved soon 

The 45-floor Inter Modal Transit Centre (IMTC) at Majestic,which envisages bringing together different transport modes like BMTC,KSRTC,the Metro and the Railways under a single roof,is not likely to see the light of day anytime soon.Construction on the prestigious project was supposed to kick off last December,but has been delayed after a stand-off between the bidding firm and the state government over the issue of viability gap funding (VGF).While the firm wants the government to chip in with Rs 600 crore in VGF for the Rs 1,800-crore project,to come up over 32.5 acres,the state government has said VGF is not an option.

The company,which was the only one to come forward to implement the project under the PPP model,is asking for funding of Rs 600 crore,which is certainly not an option before us.We have told them so.They will be given commercial space on lease for 30 years.

However,talks are on and we are hopeful that the issue will be resolved and the project will kick off soon, R.Ashoka,deputy CM and transport minister,told  Media

The state government had proposed the IMTC project last year.Of the 40 acres owned by the government in the Majestic area,including BMTCs 20 acres,7.5 acres has been given to BMRCL and 32.5 acres was earmarked for the project.

The IMTC,whose proposed 45 floors may change depending on the allowed floor-area ratio (FAR),will be a state-of-the art structure housing transport modes and government offices,and is supposed to come up in an area of over 20 acres.The remaining 12 acres is proposed to be developed as a commercial area and will include shops,malls,eateries and entertainment outlets.As per the governments proposal,the commercial area would be leased to the firm under the PPP model for a period of 30 years for the latter to recoup its investment.

The project is estimated to be over Rs1,800 crore.Twelve companies were shortlisted,but only the Andhra Pradesh based Rithwik group submitted a financial bid.Later,the VGF issue cropped up and they have asked the state to fund Rs 600 crore.The matter is before the state government.

All these issues were brought up twice before the government and presented before two chief ministers.With both the stake- holders sticking to their positions,the project has not progressed though it was earlier set to start in December, a senior transport department official told Media.

An artists impression of the proposed inter-modal transit centre at Majestic