SPV Model for Bengaluru Suburban Rail Service

Typical SPV Model

SPVSponsors

ContractorsSuppliers

Consumers

FinancialInstitutions

CapitalMarkets

Project

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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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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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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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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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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, DULTOfficials from State Revenue and Transport DepartmentGM-SWR, DGM – Bangalore Division BMTC, BMRCL Nominees CiSTUP Chairman ?

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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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