New Delhi: Staring at a major shortfall of revenue from property development, Delhi Metro Rail Corporation (DMRC) wants Delhi Development Authority (DDA) to expedite the release of Rs 1,210 crore. DMRC has raised this demand since DDA declined to provide the required land parcels for property development to generate funds for ongoing works.
Sources said the issue was raised at the recently held board meeting of DMRC at urban development ministry. They added DMRC raised this issue since earlier DDA had offered that the corporation should seek capital funds as grants in lieu of allotment of land parcels. A top DDA official said that though no decision was taken at the DMRC board meeting, the authority will place this proposal in its next internal meeting to take a final decision.
Pushing for expeditious release of the amount, DMRC has said that “Non-availability of fund for paying to the contractors will lead to time and cost overrun.”
TOI has learnt that as per Cabinet decisions, DMRC had a target to raise Rs 2,505 crore revenue from property development during completion of all the three phases. However, the actual revenue receipt is pegged at only Rs 1,295 crore.
Sources said while DMRC was following up the issue of removing restrictive clauses set by DDA and municipal bodies to maximize revenue generation from nine properties, last year it placed the proposal for allotment of two land parcels in Vasant Kunj and Paschim Vihar before DDA. DMRC wanted 10.42 hectares in Vasant Kunj for residential development and another 10.47 acres in Paschim Vihar for mixed purpose – both residential and commercial.
But in October, DDA had suggested that DMRC seek capital funds as grants rather than seeking land parcels for property development. Records show that while DDA’s alternative proposal was “promptly” accepted by DMRC, but the authority neither provided the funds or allotted the land parcels.
Subsequently, DMRC brought this issue in the board meeting requesting the urban development ministry to “impress upon DDA to allocate” the fund in two equal yearly installments starting from 2015-16. The second option is to direct the agency to immediately provide the identified land parcels.
Government sources also said that the Urban Development ministry had earlier supported DMRC’s demand to do away with the restrictive provisions in the case of certain land parcels that have already been allotted to the agency involved in building and maintaining the Metro network. However, nothing has happened so far.