GHAZIABAD (Metro Rail News):Â Following the Uttar Pradesh (UP) government’s rejection of the Ghaziabad Development Authority’s (GDA) planned allocation, the financing scheme for the forthcoming metro extension projects in Ghaziabad, namely Vaishali to Mohan Nagar and Noida Sector 62 to Sahibabad, is being reevaluated.
In response to a request from the principal secretary, the GDA submitted a proposal to the state government outlining the funding patterns for the projects, which have an estimated cost of Rs 3,686 crore. The GDA proposed a 50:20:30 cost-sharing arrangement between the state, the centre, and additional organisations including the Housing Board and UPSIDC.
However, the UP government dismissed the GDA’s proposal to have the state bear 50% of the cost. As a result, the GDA has been instructed to devise a fresh funding plan. A GDA official explained, “When funding the Dilshad Garden to Shaheed Nagar New Bus Adda metro corridor, the GDA had to contribute a significant portion of its own funds. This is a key reason why the GDA’s finances have become depleted.Â
Currently, the GDA is unable to finance any other major project following the previous funding pattern.
After considering alternative modes of transportation, such as a ropeway and a new metro line, the GDA decided to revert to the original plan of extending the existing metro lines. The Vaishali to Mohan Nagar extension project is estimated to cost Rs 1,808 crore, while the Noida Sector 62 to Sahibabad extension project is expected to cost Rs 1,517 crore.
During the conference, we proposed that the two metro extension projects should be funded similarly to those in Lucknow and Agra, where the state and federal governments each pay 25% of the project expenditures, with the remaining funds coming from loans and bonds. But we were told that the state could not cover 50% of the project’s expenses. As a result, we will now need to develop a new finance strategy, the official said.Â
