NEW DELHI (Metro Rail News): On Wednesday, the Union Cabinet, chaired by Prime Minister Narendra Modi approved a decision of sharing 50 percent of the land cost with the Delhi government for three priority corridors of Phase-IV of Delhi Metro.
The three approved corridors of Delhi Metro Phase-IV projects are Aerocity to Tughlakabad, R.K Ashram to Janakpuri and Mukundpur to Maujpur.
A cabinet statement said that as per the revision in funding pattern, both the Centre and Delhi government will share the land cost of Metro Phase-IV in the ratio of 50:50. This is in pursuance of the amendments to Metro Rail Policy, 2017 applicable only for Delhi in compliance with the Supreme Court order dated September 6, 2019.
The Supreme Court, in its order, had upheld the provisions of Metro Rail Policy, 2017, regarding bearing of operational losses and repayment of the external loan and currency fluctuation cost by the State in case the special purpose vehicle (DMRC in this case) fails.
The apex court had directed to depart from the policy to be applicable only in the case of Delhi and to share land cost in the ratio of 50:50 between the Centre and the Delhi government.
According to the Cabinet statement, the total cost of the project, which is Rs 24,948.65 crore, remains unchanged. The contribution from the Centre increases from the existing Rs 4,154.20 crore to Rs 4,643.64 crore, resulting in a net increase of Rs 489.44 crore.
The cabinet said in a statement “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”.
Earlier in March 2019, the government of India had approved these three corridors of the Delhi Metro Phase-IV project at a completion cost of Rs 24,948.65 crore. The funding pattern was kept in line with provisions of Metro rail policy, 2017.
In April 2019, the Delhi government, however, directed DMRC not to start work on the sanctioned corridors unless ministry of housing and urban affairs revises the cost-sharing pattern in tune with approval concurred by them. After the intervention of the Supreme Court, the work was started in July 2019.