Centre to share 50% of land cost with Delhi govt

The Union Cabinet, chaired by the Prime Minister Narendra Modi, on Wednesday accepted a call of sharing 50 per cent of land cost with Delhi authorities for 3 precedence corridors of Phase-IV of Delhi Metro. These three accepted corridors of Delhi Metro Phase-IV initiatives are Aerocity to Tughlakabad, R.K Ashram to Janakpuri and Mukundpur to Maujpur.

As per the revision in funding sample, each the Centre and Delhi authorities will share the land cost of Metro Phase-IV within the ratio of 50:50. This is in pursuance of the amendments to Metro Rail Policy, 2017 relevant just for Delhi in compliance to the Supreme Court order dated September 6, 2019, a cupboard assertion stated.

The Supreme Court, in its order, had upheld the provisions of Metro Rail Policy, 2017, relating to bearing of operational losses and compensation of the exterior mortgage and forex fluctuation cost by the State in case the particular function automobile (DMRC on this case) fails. The apex courtroom had directed to depart from the coverage to be relevant solely within the case of Delhi and to share land cost within the ratio of 50:50 between the Centre and the Delhi authorities.

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According to the Cabinet assertion, the whole cost of the challenge, which is Rs 24,948.65 crore, stays unchanged. The contribution from the Centre will increase from the present Rs 4,154.20 crore to Rs 4,643.64 crore, leading to a internet improve of Rs 489.44 crore.

“The amount of external loan from bilateral/multilateral agencies which Delhi Metro Rail Corporation (DMRC) has to repay increases from the existing Rs 11,462.60 crore to Rs 12,930.91 crore with a net increase of Rs. 1,468.31 crore,” the Cabinet stated in an announcement.

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Earlier in March 2019, the federal government of India had accepted these three corridors of Delhi Metro Phase-IV challenge at a completion cost of Rs 24,948.65 crore. The funding sample was saved in line with provisions of Metro rail coverage, 2017.

In April 2019, the Delhi authorities, nevertheless, directed DMRC not to begin work on the sanctioned corridors until ministry of housing and concrete affairs revises the cost sharing sample in tune with approval concurred by them. After the intervention of the Supreme Court, the work was began in July 2019.

Edited by Chitranjan Kumar

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