Moneycontrol PRO
HomeNewsIndiaAs lease model fails, Karnataka clears proposal to buy coaches for Bengaluru suburban rail

As lease model fails, Karnataka clears proposal to buy coaches for Bengaluru suburban rail

 While approving the project in 2020, the Union government had asked the state to induct coaches under the lease model to reduce project costs

November 29, 2024 / 13:27 IST
Bengaluru suburban rail project

A Karnataka Cabinet meeting on November 28 approved the state's share of Rs 2,135 crore for the purchase of 306 train coaches (rolling stock) for the Bengaluru suburban railway project.

"The estimated cost for the rolling stock for the project is Rs 4,300 crore, out of which the state will bear Rs 2,135 crore (50 percent) and the remaining 50 percent will be borne by the Union government. This amount will be provided to K-RIDE to purchase 306 coaches over the next five years," Karnataka Minister for Law and Parliamentary Affairs HK Patil said.

Karnataka Rail Infrastructure Development Enterprises (K-RIDE), a joint venture between the rail ministry and the Karnataka government, is implementing the project and plans to induct metro-like AC coaches.

Patil said that Corridor C2 (Byappanahalli- Chikkabanavara) will be operational by December 2026, while Corridor 4 will run from Heelalige to Rajanakunte by December 2027.

Also read: End Of The Line: Bengaluru suburban rail's Whitefield-Kengeri corridor likely to be scrapped

He added that there was a lukewarm response to the tender for coaches under the lease model, which was floated in January 2023. "Companies did not show interest, so we decided to go for the purchase model. This is to avoid a situation where the corridors are ready but there are no trains to run on them."

K-RIDE plans to induct 300 coaches (50 six-coach trains) for the 149km suburban rail network.

Also read: Bengaluru suburban rail project: BEML, BHEL & Spain-based CAF in race to supply AC coaches under PPP model

While the Union government had approved the project in 2020, it had recommended that the state induct coaches under the lease model to reduce costs. Sources said the project cost fell from Rs 18,621 crore to Rs 15,767 crore due to the PPP model for rolling stock. However, rolling stock firms were hesitant to make large investments with low immediate returns, and those interested could not partner with any financial firms.

K-RIDE plans to operate six-coach trains for 19 hours a day (from 5am to 12 midnight). The operational speed will be 32 kmph, and additional trains will be deployed based on demand, especially during peak hours. The total number of coaches required for the four suburban rail corridors is expected to be 342 in 2026, 396 in 2031, and 564 in 2041.

Metro operators in Delhi and Chennai had also explored leasing options for rolling stock, but this has yet to take off.

Also read: India's most congested city, Bengaluru, faces train set supply crisis

Moneycontrol News
first published: Nov 29, 2024 01:27 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347