3. Participants & Roles
Project Financing has many participants
Sponsors – Host Government, Private Enterprise
Development Company, i.e. Special Purpose Vehicle, which
supervises the design, build and operational activities of the
project
Financial Institutes – Who lends money to the project
Capital Markets – To raise funds from capital market via
shares, bonds etc.
Suppliers, Contractors – Who will build the project
Consumers – Who will consume the goods and services from
the project
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4. Comparable Models in Suburban Rail
Services in India
MMTS Hyderabad
South Central Railways, 100% owners
State Govt sharing the 50% cost for phase-1, 67% for Phase-2
No monitoring or continuous development mechanism to
expand/update the services
SCR sole deciding authority, State govt has virtually no say.
Fares are based on IR fare regime.
No debt financing
MRVC Mumbai
SPV with GOI and State Govt (contributing 51% and 49% respectively)
for 25 Crores as the initial capital
It only formulates the plans and rolls out the projects in consultation
with GOM and GOI.
It charges a consultancy fee for preparing plans, procuring loans etc.
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5. Comparable Models in Suburban Rail
Services in India …Continued
MRVC Mumbai
IR collects surcharge and share 50% with MRVC
World Bank lending to GOI and GOM into respective shares.
Repayment by GOI and GOM
IR and MRVC jointly decides on project works
MRVC continuously monitors the project and takes up the
improvements, additions and new ones.
GOI/ IR takes care of addition of track and signaling infrastructure,
running of trains etc.
MRVC takes care of Non-Train activities including procurement of
EMU’s, building stations, circulating areas etc.
GOM helps MRVC with building feeder roads
Fares are determined on ‘Sub-Urban’ Category
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6. RITES’ Model for Bengaluru Suburban
Rail Service
Based on MRVC, Mumbai Model
Consultancy Service Model
Reason, it doesn’t create separate exclusive assets like BIAL
It uses the existing and future enhanced IR infrastructure
Entity – Bengaluru Suburban Rail Corporation
Formulates plans, rolls out projects under GOI/GOK
guidance
IR to undertake required Track and Signaling
enhancements
IR to take care of running of trains, personnel
BCRC to take care of stations, Auxiliary areas, feeder
roads and services with the help of GOK
Fares based on ‘Sub-Urban’ regime
Plus a surcharge to cover the BCRC consultancy
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7. RITES’ Model for Bengaluru Suburban
Rail Service
Funding
GOK and GOI to contribute 100 Crores in 50-50 partnership as
the initial capital
Funding from financial institutes like World Bank, Asian
Bank, Islamic Development Bank, IBRD
Stake Holders
Chairman – Nominated Railway Board Member
MD – Jointly decided by GOK and GOI
Board Members
Principal Secretary, UDD
Principal Secretary, IDD
Commissioner, DULT
Officials from State Revenue and Transport Department
GM-SWR, DGM – Bangalore Division
BMTC, BMRCL Nominees
CiSTUP Chairman ?
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8. RITES’ Model for Bengaluru Suburban
Rail Service
Working Executives
Chairman
Managing Director
Director - Planning & Projects
Work with stakeholders to draw project plans, roll out and execute the new
projects
Responsible for projects by SWR as well as other Non-Rail projects needed for
CRS operations
Director - Technical
Execution of Electrical and Mechanical projects
Procurement of EMUs, construction of EMU sheds
Maintenance and upgrade of Electrical and Mechanical services
Director – Finance
Control of BSRC finances
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