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Bangalore Metro Rail Transit System Project  :Go to Project Summary

Bangalore Metro Rail Transit System Project 


Borrower/Equity Investment Name Bangalore Metro Rail Corporation Limited (BMRC)
Country India
Location Bangalore
Project Number 43912-01
Approval Number 7329
Type of ADB Assistance / Amount
Others US$250.00  million
Thematic Classification Environmental Sustainability
Economic growth

Sector/Subsector Transport and ICT / Urban Transport
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Hayato Hoshi
Description The project is the development and operation of an urban metro rail transit system in Bangalore city (also known as Bengaluru) comprising two intersecting corridors (north¿south and east¿west).

The project is being jointly processed by ADB's South Asia Department (SAPF Division), A. Mehta, and Private Sector Operations Department (PSIF1 Division), H. Hoshi. Total proposed ADB loan is US$250 million provided equally from the two departments and the lending modality is entirely from ADB's non-sovereign public sector lending modality, which provides loans to government owned entities without recourse to the sovereign government.
Objectives and Scope Urban transport is a critical component of urban services. Apart from allowing direct and efficient travel, it also creates a better urban environment by reducing congestion and pollution. Economic benefits of rail systems are significant and include savings in travel time, reduced operating costs, safer transportation with lower levels of accidents and related fatalities, and lower levels of local pollution. Rail-based urban transit systems have an advantage over road-based systems in terms of efficiency and carrying capacity, especially when catering to heavy passenger traffic in densely populated areas. In developed countries, most large cities have rail-based mass transit railways as the core of their transport systems. However, in developing countries there has not been enough emphasis on mass transit or integrated city planning, with the result that many metropolitan cities depend predominantly on private transport modes. With increasing road congestion and pollution, cities are being forced to examine and develop better means of transportation.

Given the need for effective public transport solutions the Government of India and the Government of Karnataka Sponsor[s]) examined a number of possible urban transport solutions for the city, including different modalities. The rail-based mass transit system was viewed by the sponsors as most appropriate for the city.

The scope of the project is to implement a metro rail project in Bangalore, including the development of 42.3 kilometers (km) of metro rail, 40 stations, 2 station depots, signaling, electro-mechanical system, and all ancillary facilities and rolling stock. The metro alignment for the city would follow two main transit corridors: (i) an east¿west corridor of 18.1 km starting at Byappanahalli and terminating at the Mysore Road terminal and (ii) a north¿south corridor of 24.2 km, starting at Nagasandra and terminating at Puttenahalli. Of the planned length 8.82 km near City Railway Station, Vidhana Soudha, Majestic, and City Market will be underground sections, and the rest will be elevated.
Linkage to Country/Regional Strategy Development of urban transport is one of the focus areas of urban infrastructure under Strategy 2020. The strategy also envisages ADB helping DMCs move their economies onto low-carbon growth paths by modernizing public transport systems. ADB can assist DMCs and their municipalities address a range of environmental problems resulting from rapid urbanization. This includes supporting cleaner modes of transport.

The country partnership strategy (CPS) 2009−2012 is in line with the national government's aims for infrastructure development, requiring over $500 billion over a 5-year period (2007¿2012). The project strongly supports the CPS, which emphasizes infrastructure development. The project enables better leveraging of scarce sovereign resources, and spurs private sector and commercial funding for infrastructure projects.
Safeguard Categories Safeguard Categories explained (Launches new browser window)
Environment B
Resettlement C
Indigenous People C
Summary of Environmental and Social Aspects Environment

The project is expected to contribute to significant environmental improvements for Bangalore city. A decrease in noise and air pollution along with reduced average fuel consumption is expected because of reductions in projected traffic growth volumes on the transit corridors (in a without-project scenario).

Temporary adverse environmental impacts are expected largely during the construction phase of the project involving elements such as the elevated and underground sections of the metro rail alignment, stations, maintenance depots, and casting yards. The project management has ensured that adequate mitigation measures have been taken to reduce these impacts.

According to initial environmental impact assessments, BMRC has already incorporated several measures to mitigate any environmental impacts, including noise reduction measures through installing soundproof walls and soundproofing pads, and air quality monitoring equipment placed all along the alignments. The Indian Institute of Science in Bangalore was appointed to monitor the groundwater level and quality during construction.


BMRC adopted a transparent approach for the acquisition of land and properties, cash assistance for rehabilitation, and appropriate compensation packages. The rehabilitation packages were developed and have been implemented and cash compensation has been paid to the affected households by BMRC. The cash assistance included a shifting allowance, inconvenience allowance, right to salvage material, transitional allowance, rental income loss allowance, business premises reestablishment allowance and a business loss allowance. In addition, BMRC is meeting the cost of restoring the affected portions of public property, including a school, hospital, park and religious structure. Rehabilitation packages, designed for the benefit of persons who suffered loss of land, properties and income and livelihoods, have been paid simultaneously with the compensation. Additionally, affected slums were rehabilitated through a new housing scheme developed in the Peenya area where the slum dwellers have been allotted housing. BMRC has allotted and registered new houses for the slum dwellers in the name of women of the household which is in compliance with international best practices.

Stakeholder Communication, Participation and Consultation Public consultation has been carried out by BMRC and suggestions and comments from the community have been incorporated in the project design and execution. The IEE prepared for the project captures the identified issues and will be disclosed on the ADB website in accordance with ADB's Public Communications Policy (2005) and Safeguard Policy Statement.

Consultations were carried out with all the stakeholders during the preparation of the project. As an integral part of land acquisition, affected communities and affected people were directly and fully involved in the project. All stakeholders were informed and the stream of information will continue during the implementation of the project. Consultations were held to ensure participation and minimization of the negative impacts. Different techniques of consultation with stakeholders were used during project preparation¿public opinion, public meetings, group discussions, and interactive sessions, etc.

Timetable for assistance design, processing and implementation
Concept Clearance 04 Aug 2009
Due Diligence Mission 28 Oct 2009 to 31 Oct 2010
Private Sector Credit Committee Meeting 03 Nov 2010
Board Approval 31 Mar 2011
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