Cost- value analysis of Bangalore metro

Abstract

Bangalore metro railway (Namma Metro) is one of the major initiatives taken by Karnataka government in collaboration with the central government, which is going to be about 43.2 km in length. After the conceptualization part, it is now under full-fledged construction. It is expected that this dream will come into reality by the end of 2011 or early 2012. Bangalore is one of the fastest growing cities in India; its net worth is 3rd within the country, just after capital city Delhi and Mumbai. The average per capita income of the city is around 50,000 per month which is considerably larger than 37,000 per month, which is the avg. value for India. The city has shown an enormous growth in population as well as in capital in recent years. Being a IT hub of India, it is basically populated by the residents from various parts of India and encompassing a cosmopolitan culture. But, as the city does not have a solid master plan, the growth is somewhat affected by the high congestion, and traffic problem, especially the peak hour traffic is a daily problem for a Bangaorian. In this project, we have shown that why demotorisation is necessary for the sustainability of Bangalore city and its infrastructure. We have assigned certain parameters for the evaluation criteria, a comparison has been made on the various modes of transports and it is clearly showing that in a city like Bangalore, where there is a huge population density, metro will be the best option. This is also supported by our survey result, which shows that there is a high level of awareness among people about Namma metro and a majority of lower tier income populated people will shift to metro for daily commutation. The Bangalore metro cost value analysis has mainly done on the basis of two major components; the cost which is incurred by govt. in various phases of the project, conceptualization and construction phases. This cost structure has 2 parts, 1 is fixed cost, and another part is recurring, which is mainly the operating cost and interest on the debt. Then we estimated the revenue per year which can be obtained from various sources, at last we have balanced the cost and revenues of various factors to obtain an estimated break even of the project. To conclude, what we can say that, Once Bangalore Metro will come true, we, being Indian, will be proud of this rich conglomeration of high technology and dedicated workforce. We express our sincerest gratitude for giving us the opportunity to help Prof. Hema Swaminathan with this project, which has been a wonderful experience for us.