The special Purpose vehicle model that RITES has recommended in its 2012 report for implementing Suburban/Commuter Rail Service in Bengaluru

1. SPV Model for
Bengaluru Suburban Rail Service

2. Typical SPV Model
SPVSponsors
Contractors
Suppliers
Consumers
Financial
Institutions
Capital
Markets
Project
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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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