Bengaluru: After commercial exploitation and advertisements, BMRCL's next source of non-fare revenue is land leasing. Surplus land owned by the department can be leased on a long-term basis to a real estate developer, who will in turn pay Namma Metro.
"We have 30 acres of extra land. Of this, we have started the bidding process only for one. Auction is going on for a land parcel of 12 acres in Nagasandra. As per the BDA's zonal regulations, the successful bidder can build anything he wants and pay the lease amount to us," said BMRCL Managing Director Pradeep Singh Kharola.
The remaining land parcels owned by them are in Banashankari, Mysore Road, Baiyappanahalli and Vijayanagar, for which the bidding is yet to take place.
Speaking about the potential revenue earned through this, Mr Kharola said, "We cannot say how much we can earn, as the auction for the highest bidder is going on. It could be anywhere between Rs 10 crore and Rs 20 crore per acre."
The Delhi Metro Rail Corporation, an advisor to BMRCL, ventured into residential property development, where they would construct 2 BHK and 3 BHK flats in Delhi, sell them, thereby earning non-fare revenue.
Commenting on it, Mr Kharola said, "It is better for BMRCL to focus on its people and resources on Metro construction, instead of employing people for building homes. Moreover, the real estate industry is not doing too well right now."
The lease period stated for real estate developers by BMRCL is 30 years. This incidentally is also the same time period given to BMRCL for paying back their debt to foreign investors. Agence Francaise de Development has lent Rs 1,600 crore and European Investment Bank, Rs 3,700 crore for Bengaluru Metro Phase 2.
