A note prepared by the Finance Department favouring a fifth township under Bangalore-Mysore Infrastructure Corridor (BMIC) project cited scaling down of land requirement for its decision.
The Finance Department note (November 7, 1995) released by the former Prime Minister H.D. Deve Gowda on Wednesday reads as follows: The Finance Department has examined the proposal of the Public Works Department to set up BMIC through M/s Kalyani Group on Build Own Operate Transfer (BOOT) basis. Regarding the economic viability as per the proposal submitted, it is shown that if roads and townships 1, 2, 3 and 4 only are made, then the internal rate of return (IRR) of the project would be 12.96 per cent and net present value (NPV) at a discounting rate of 14.03 per cent would be Rs. -37.48 crore.
However, if the project is taken as roads and townships 1, 2, 3, 4 and 5, then the IRR would be 15.2 per cent and NPV at the discount rate of 14.03 per cent would be Rs. 45.12 crore.
If the above proposals are taken, then the gross requirement of land would reduce from 20,092 acres to 6,227 acres if the proposal to have roads and townships 1, 2, 3 and 4 is accepted. Thus, there will be a saving of about 13,865 acres.
In case proposal to have roads and townships 1, 2, 3, 4 and 5 is taken, then the land requirement will come down from 20,092 acres to 8,909 acres, saving about 11,183 acres.