Geopolitics of Bengaluru's Yellow Metro Line

Takshashila Discussion Document - Version 1.0

Executive Summary

Even after its inauguration, Bengaluru’s long-awaited Yellow Line faces lengthy wait-times and overcrowding due to an acute shortage of train-sets. Despite the full completion of civil works, the line is operating at only one-fifth of its capacity with just three of the planned fifteen train sets. The reason for this hampered launch stems from a series of policy decisions and geopolitical tensions.

The contract for the train sets was awarded to a Chinese state-owned firm, CRRC, in 2019 as it was the lowest bidder. However, the Galwan clash in 2020 led the Union government to impose strict regulations on Chinese companies. These regulations effectively stalled the project, preventing CRRC from setting up its local manufacturing plant and securing necessary clearances for imported parts and personnel. The resulting delay caused CRRC to enter a new joint-venture with an Indian partner. In the end, the project’s timeline was extended by over four years, leading to a cost increase of 32%, or approximately ₹1,866 crore. This far exceeded the initial savings of ₹410 crore from choosing the Chinese bidder.

This experience showcases the pitfalls of an inconsistent procurement policy. Selecting a Chinese supplier for cost savings, followed by a mid-course reversal due to geopolitical factors ultimately hurt Indian commuters and finances. Future infrastructure projects should either commit fully to a chosen supplier, managing geopolitical risks proactively, or adopt a modified Quality-cum-Cost Based Selection (QCBS) that explicitly accounts for long-term strategic and geopolitical factors beyond just the lowest bid.

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