Wednesday, May 01, 2024 | Last Update : 09:09 AM IST
Phase 4 caught in delays, cost may go up by Rs 6,000 crore
Centre, Delhi yet to take call on funding agency.
New Delhi: The cost of Phase-4 of the Delhi Metro is likely to increase by Rs 6,000 crore as the Centre and the Delhi government are yet to take a call on the funding agency — whether the Japan International Cooperation Agency (JICA) or some other entity — and also because the Metro will have to prepare detailed project reports (DPRs) afresh for the new phase by involving private players, mandated under the new Metro policy.
On its part, the Delhi Metro had already sought the Centre and the Delhi government’s approval for Phase-4 in October 2014 and the state administration gave its approval in January, 2017, with a rider seeking exemption from paying its share of the subordinate debt for Central taxes that amounts to Rs 3,098 crore. The same was rejected by the Centre. Under Phase-4, Metro network in Delhi had to be expanded by 104 km. The new lines of tghe Phase-4 will add a ridership of 8.5 lakh every day.
A senior official of the ministry of housing and urban affairs (MHUA) told this newspaper that the cost of Metro Phase-4 is likely to be increased from Rs 55,028 crore to Rs 61,000 crore due to delay on the part of the Centre and the Delhi government. The Centre has also asked Delhi Metro to get the DPRs resubmitted through Delhi government after revising it as per the Metro policy, 2017.
This will reportedly take at least 10 to 12 month to get approvals for Phase-4 projects at various levels, including the complex tendering process.
Earlier, in a letter to Delhi chief minister Arvind Kejriwal, Union HUA minister Hardeep Singh Puri expressed concern over a 15 month delay in completion of Phase-3 of Delhi Metro and the Phase-4 running behind the schedule by two-and-a-half years on account of actions and decisions taken by the Delhi government.
Usually, 70 per cent of the funds come through loan and the remaining 30 per cent cost is borne equally by the Delhi government and the Centre.
The Delhi Metro Rail Corporation (DMRC), which was set up in May 1995 under the Indian Companies Act, is an equal equity joint venture between the government of India and the Delhi government.
The latter bears 50 per cent cost towards equity, subordinate debt for land and subordinate debt for reimbursement of Central taxes.
