Tuesday, July 7, 2009

All Projects before 2010 Deadline: Delhi Metro


Delhi Metro has been allocated Rs 1770 crore for Phase II which will be completed in 2010

An allocation of Rs 1,770.20 crore for Delhi Metro in the Union Budget is expected to meet projections for Phase II. Delhi Metro Rail Corporation (DMRC), which was earlier facing a shortage of funds for this phase and which required the state and Central governments to pitch in, is now expecting the work to be completed by the end of 2010.

The allocation, according to chief spokesperson Anuj Dayal, includes Rs 528 crore as equity, Rs 64.6 crore as subordinate debt, Rs 89.6 crore for the Noida and Gurgaon sections and Rs 1,088 crore as pass-through assistance in the form of a loan from the Japanese government. Last year, DMRC had been given Rs 1,568 crore in Union Budget.

‘‘The funding of Phase II has been completed thanks to central and state government assistance and the loan from Japan. Each year the budget allocation provides for the planned annual expenditure, and if we still fall short, we resort to supplementary grants,’’ said Dayal.

Phase II of Delhi Metro will cover 125 km with 12 corridors. Three have already been commissioned. By the time the current phase is completed, Delhi will have 190 km of Metro lines.

The project has been funded largely by the government and loan from Japan though the airport line was being developed under the PPP model. ‘‘DMRC will be taking care of the civil side of the project while the systems are being developed by Reliance. Consequently, they will operate the line for 30 years,’’ said Dayal.

Delhi Metro will also get additional funds in the form of property development activities around the Metro stations but that would account for only 5-6% of the total cost. The initial estimated cost of Phase II escalated considerably and the urban development ministry proposed a separate transportation fund to part finance the DMRC project to the tune of close to Rs 3,000 crore.

The fund would have been built on cess levied on sale of petrol and diesel, purchase of new cars and two-wheelers and on existing cars. However, with the proposal turned down by Delhi government, DMRC was collectively aided by the Centre and state to garner the additional funds.

Phase I, along with its extensions, was completed in November 2006. Under the present phase, three corridors have been combined and completion dates of some sections, like the Kirti Nagar/Inderlok-Mundka line, have been brought forward. Tendering is still on for the Anand Vihar ISBT-Vaishali and Ghaziabad lines and sources say this will hopefully be completed by the end of 2010.

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