Metro gets relief, asked to pay Rs 21 cr

May 01, 2012 - Akanksha Mehrotra |

Bengaluru

Tags:

Namma metro

The dispute between Bangalore Metro Rail Corporation Limited (BMRCL) and South Western Railway (SWR) has been temporarily sorted with the intervention of the Urban Development Ministry, which has directed BMRCL to pay Rs 21 crore towards a work permit to allow them to execute the metro project on land parcels belonging to SWR.

About a fortnight ago, the SWR with the help of RPF personnel and civil police evicted metro workers from a railway site at platform road where Namma Metro work was being executed as BMRCL did not pay lease dues to them. BMRCL has paid close to Rs 91 crore to the Railways out of the total lease amount of Rs 175 crore.

“A meeting was held about 10 days ago in which the BMRCL and Railways participated. There was a difference of opinion between the two parties on the calculation of lease payment. The BMRCL had questioned the circular of calculations used by the Railways to calculate the cost of leasing land belonging to it. The Railway Ministry, in response, said that it will take years to bring about an amendment in the lease calculation circular and that a temporary solution was immediately needed to end the ongoing crisis over land leasing,” said a senior official of SWR.

Since the BMRCL doubted Railways calculations on leasing, the Ministry of Railways referred the matter to the Urban Development Ministry. The latter looked for a temporary measure and directed the BMRCL to pay Rs 21 crore towards work permit to the Railways. Meanwhile, BMRCL chief PRO B.L. Yaswanth Chavan said that he needs to look into the matter again to comment on the issue.

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