|| JAI SHRI GURUDEV ||

ASSIGNMENT Week 1

BGSCET|MBA 1st Year

FROM:- Group 13
Harshitha G P, Manoj S Mallannavar, Manjunath R

SUBMITTING TO
Course Instructor :- Dr. Naveen Kumar G, BGSECT |MBA
Teaching Assistant :- Namrata Hubli

TOPIC:- Study a public sector enterprise with reference to its

relevance to the Indian economy
and its future prospects. Analyse the trend of its growth for
the last ten years.
 Introduction
Public Sector Enterprise Which is owned by government body and
managed by government, Its objective is to maximize social welfare
and ensure balanced economic development or government has
majority share holders. Capital is raised from government and
sometimes through public issues which is operates in basic and public
utility sectors.

According to NN Malaya “Public sector enterprise are autonomous or

semiautonomous corporation and companies established, owned and
controlled by state and engaged in industrial and commercial
undertakings”.

Public Enterprises consist of nationalized private sector enterprises

such as banks, Life insurance corporation of india (LIC) , Indian
railways and the new enterprises set up by the government such as
Hindustan machine tools (HMT), Gas authority of india (GAIL), State
trading corporation (STC), Indian oil corporation (IOC), Bharath
sanchar nigam Ltd (BSNL) etc.

Roled of Public Sector Enterprise

1. Promote investment
2. Infrastructure development
3. Price control
4. Diversification
5. Employment generation
6. Saving forex
7. Improve research development
8. Balanced regional growth

Forms of Public Sector

Public sector enterprises has categorized into 3 types :-
1.Deparment undertakings.
2.Statutory Corporation.
3.Government Company.

Department Undertaking
 Oldest and Traditional
 Department of Ministry
Ex: Railways, Post etc.

Statutory Corporation
 Established by passing a special act in parliament
Ex: LIC, RBI, SEBI etc.

Government Company
 At least 51% paid up share capital held by government
Ex: SAIL, GAIL, BHEL etc.

As a group we would like to work and present assignment on

“Department undertaking” which plays a vital role in contributing to
Indian economy.

BANGALORE METRO RAIL CORPORATION

LIMITED
(BMRCL)

We all Know that as a urban citizen

of this country how much we
dependent on public transportation
facilities given by state government
and government body of this country,
When it comes to Metropolitan cities
like Bangalore, Mumbai, New delhi,
Hyderabad, Chennai, & Kolkata etc. People who are from Below
poverty line and middle class of this country are much dependent on
Public transportation and it is heavily used by them and everyday
numbers are increasing rapidly. When it comes to major cities like
“Bengaluru” which is Silicon Valley of India where lakhs of People’s
uses public Transportation every day to travel long distance in that
“Namma Metro” (BMRCL) plays major role. As of July 2024, the
daily ridership for the Namma Metro in Bengaluru is around 8,00,000
passengers. “Namma Metro” is already second largest metro system
in india after delhi metro with 76.95km it consists of 2 line the north-
south. Its is firs inaugurated in 20th Oct 2011 and fist underground
metro station in south india, Which is currently operating over 68
stations. Headquarters located in BMTC central office sarige sadana
kengal hanumanthaiah road Bengaluru Under construction of 3 line
“Yellow “, “Pink”, “Blue” , Approval of new 3 lines that will give
boost Namma Metro. On December 6 2024, the ridership was 9.2
lakh, the highest recorded So far in the history of “Namma Metro”.

HISTORY

In 1993, Karnataka revisited the metro plan and reaffirmed SR's 1983
recommendations. The Bangalore Mass Rapid Transit Ltd (BMRTL)
was set up in 1994 to pursue public-private partnerships for the
project, introducing a city cess. BMRTL proposed a 300 km elevated
LRT (Light rail transit) system but failed to implement it.

In 2003, the Delhi Metro Rail Corporation (DMRC) was tasked to

study the project. DMRC suggested a cross-shaped, 110 km metro
system centered at Bengaluru's Central Railway Station, partly
underground, with strong economic returns. This plan was approved,
and BMRTL was replaced by Bengaluru Metro Rail Corporation Ltd
(BMRCL)

In 2003, the Government of Karnataka commissioned Delhi Metro

Rail Corporation (DMRC), which had successfully developed the
Delhi Metro, to carry out a detailed preparation study for a metro in
Bengaluru, to be done emulating the technical and financial aspects of
the approach used in Delhi. The study recommended a 2-line metro,
60 km (37.3 mi) and 50 km (31 mi) in length, cross shaped. The
middle of the cross was to be at the Central Railway Station in
Bengaluru, completely underground. The economic rate-of-return was
forecast at 22.3%. The financial forecast assumes a government
subsidy for interest payments and some depreciation, i.e. fare revenue
will cover somewhat more than direct operating costs. The
Government accepted this option. BMRTL ceased to exist and was
replaced by Bengaluru Metro Rail Corporation Ltd (BMRCL).

(BMRCL) Namma Metro Relevance to the Indian Economy

1.Boosting Urban Mobility and Productivity

Reduction in Traffic Congestion: Bengaluru, known for its traffic
issues, benefits significantly from Namma Metro. By reducing travel
time, it enhances productivity for individuals and businesses.
Increased Workforce Efficiency: Reliable and faster commuting
allows workers to spend more time at work and less in transit,
improving overall economic productivity.

2.Economic Growth and Employment Generation

Direct Employment: BMRCL generates jobs during construction,
operation, and maintenance of metro services. Over 20,000 jobs have
been created directly through construction, operation, and
maintenance.
Indirect Employment: Boosts ancillary industries such as construction
materials, logistics, and retail outlets around metro stations.
Transit-Oriented Development (TOD): Encourages commercial and
residential projects along metro corridors, leading to urban expansion
and economic growth.

3.Sustainable Urban Development

Reduced Carbon Emissions: By providing an eco-friendly alternative
to private vehicles, Namma Metro reduces pollution, aligning with
India’s sustainable development goals.
Energy Efficiency: Metro systems consume less energy per
passenger-kilometer compared to road-based vehicles, contributing to
a greener economy.

4.Real Estate and Infrastructure Development

Increased Property Values: Metro connectivity leads to a rise in
property prices near stations, boosting the real estate sector.
Infrastructure Modernization: Spurs the development of roads,
flyovers, and pedestrian-friendly pathways around metro corridors.

5.Supporting "Make in India" and Infrastructure Initiatives

Local Manufacturing: Namma Metro projects use a significant portion
of locally produced materials and technology, supporting the "Make
in India" initiative.
PPP Models: Encourages Public-Private Partnerships, attracting
investments and fostering innovation in urban transportation.

6.Strengthening Tourism and Local Economy

Connectivity to Landmarks: Easier access to cultural and commercial
hubs boosts tourism and local businesses.
Retail Growth: Stations and nearby areas become commercial
hotspots, stimulating retail and small businesses.
7.Contribution to National GDP
Reducing economic losses caused by traffic congestion. Enhancing
urban living standards, making cities more attractive for investments.
Namma Metro earned approximately ₹855 crores (USD 103
million), including fare collections and other sources like
advertisements and rentals. By reducing travel time, Namma Metro
saves an estimated ₹2,000 crores (USD 240 million) annually in
terms of lost productivity. Reduced dependency on private vehicles
leads to savings of around ₹600-800 crores (USD 72-96 million)
annually on fuel costs. Over 20,000 jobs have been created directly
through construction, operation, and maintenance.

Future Prospects of (BMRCL) Namma Metro

Current
Operational
Network

Future
Expansion
Planned by
Government
With Bengaluru’s roads becoming increasingly congested and the
city’s population booming, the Namma Metro stands as a beacon of
hope for millions of daily commuters.
Since its inception in 2011, the Bengaluru Metro, managed by the
Bangalore Metro Rail Corporation Limited (BMRCL), has
revolutionized urban transport in the city. The metro now spans over
76.95 kilometers, with the Purple and Green Lines serving as vital
arteries for more than 800,000 daily passengers. However, the journey
doesn’t stop here. With ambitious plans laid out for the coming years,
the future of Bengaluru Metro promises to reshape the city’s
transportation landscape even further.

Expansion Plan
Phase 2 (Underway): Adding 72 km of new lines to the existing
network, including key corridors like Whitefield and Electronics City.
Expected completion: 2025. Investment: ₹30,695 crores (USD 3.7
billion).
Phase 2A and 2B Focus on connecting Central Silk Board to
Kempegowda International Airport via ORR-Airport Line. Length:
58.19 km Expected completion: 2026.
Phase 3 (Planned) Proposed addition of 44 km, connecting peripheral
areas and fostering regional connectivity. Estimated cost: ₹16,000
crores (USD 1.9 billion).
The future of BMRCL lies in its ability to scale up its operations,
adopt cutting-edge technologies, and integrate with other urban
transport systems. By addressing the challenges of urban congestion
and sustainability, Namma Metro is poised to become a model for
urban transport in India and a key driver of Bengaluru’s and India’s
economic growth.

Analyse the trend of its growth for the last ten years. (BMRCL)
“Namma Metro”

Ridership Growth Namma Metro's first section, the Purple Line

(Baiyappanahalli to MG Road), was inaugurated in October 2011.
2011–2017 Ridership was started modestly, with daily commuters
reaching around 100,000 after the opening of Phase1. 2018–2023
Ridership has consistently grown, crossing 500,000 daily passengers
in 2023. Post-COVID recovery has further accelerated the ridership
due to improved connectivity and new line inaugurations. Future
estimates suggest ridership will exceed 1.5 million daily passengers
once Phase 2 and Phase 2A/2B are fully operational.

Financial Growth Capital Total investment for Phase 1 was ₹14,000

crores in 2011 when it was started Fare revenue increased from ₹138
crores (2017) to over ₹855 crores (2023), including earnings from
ticketing, advertising, and retail space rentals. Over the decade, more
than ₹60,000 crores were invested in metro expansion and
infrastructure development.

Over the last 10 years, Namma Metro has contributed significantly to

reducing Bengaluru’s carbon footprint: Reduction of emissions by
cutting down on private vehicle usage. Improved air quality and
traffic decongestion in metro-served areas. Namma Metro played a
key role in reducing traffic congestion and emissions. Estimated to
save ~2,500 tons of CO2 annually by shifting commuters from
private vehicles to public transport.

The estimated revenue of BMRCL (Namma Metro) from 2011 to

2024 can be calculated based on the timeline of its operational phases,
ridership growth, and non-fare revenue streams.

Phase 1: Total (2017–2023): ₹2,500–3,000 crores.

Phase 2: Total (2024): ₹900–1,100 crores.

Total Estimated Revenue (2011–2024)

Fare Revenue: ₹3,500–4,000 crores.

Non-Fare Revenue: ₹300–400 crores.

Grand Total: ₹3,800–4,400 crores (USD 460–530 million).

 CONCLUSION

Final Thought BMRCL (Namma Metro) comes under the

Departmental Undertaking sector Enterprise stands as a vital public
sector initiative that has revolutionized urban transport in Bengaluru,
addressing the challenges of traffic congestion, pollution, and
connectivity in one of India’s fastest-growing cities. Its contributions
extend beyond transportation, encompassing economic growth,
sustainability, and enhanced quality of life for citizens.

THANK YOU