Kiadb’s push for namma metro

Karnataka Industrial Areas Development Board (KIADB) has provided a major relief for Namma Metro, which is gearing up for phase II of the project covering 72 kilometres. Karnataka Industrial

Areas Development Board (KIADB) has provided a major relief for Namma Metro, which is gearing up for phase II of the project covering 72 kilometres. As per the direction of the state

government, the KIADB, which acquires land for Namma Metro project, has decided to lower service and administrative charges to 4% from 7.5% of the basic land cost. The Bangalore Metro Rail

Corporation Ltd (BMRCL) had earlier contended that a hefty service charge would be a financial burden on the institution and appealed to the state government to direct the KIADB to charge

just one per cent of basic cost of the land acquired for the project. A higher official of the KIADB said, “We are charging 7.5% service charge for public sector companies and 11% for

private companies. Namma Metro is a project in which both the central state governments are partners. The BMRCL asked us to cut down the service charge, as it was becoming a burden for them.

We told them that the state government has to come out with an order on the matter. The chief secretary had convened a meeting and it was decided that KIADB would charge 4% on (basic land

price) as service charge for acquiring land for Namma Metro in the city.” For the ongoing project, the BMRCL marked total of 929 properties and took possession of 899. Of the remaining 30

properties, most  are in Reach 3A (Yeshwanthpur and Peenya), Reach 4 (KR Market to RV Road). The BMRCL has already commenced the operations of Reach 1 (MG Road to Byappanahalli). The KIADB

official said: “For Namma Metro a huge number of private properties was acquired and the compensation paid was huge. Though our Board had taken to deduct the service charge, only the state

government could take the final call. And chief secretary headed higher level committee had decided to reduce the charges. “BMRCL’s contention is that we employ only a few people for

acquisition of land, hence the cost incurred is very less. They had argued that we can meet the expenses by charging just one per cent of service charges. KIADB can only generate income by

charging service charge and run the show. On the other hand if acquisition of land is questioned by people in the court of law and gradually the court directs us to pay higher compensation,

we would end up paying from our fund. Considering these factors we charge reasonable service charge and it helps the Board.” The department of commerce and industries issued the notification

to this effect on June 21.