GST affects government for buying new metro coaches

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MMRDA plans to introduce First Class Metro Compartment in upcoming metro projects (Photo: DMRC)
MMRDA plans to introduce First Class Metro Compartment in upcoming metro projects (Photo: DMRC)

New Delhi: The introduction of GST has made difficulty for the Delhi government to buy new metro coaches as it will have to shell out more money as compared to the centre.

Delhi metro proposed to procure 582 coaches with Delhi government for 17 months but now they have piped down it’s demand for 164 coaches. So now the Delhi Metro Rail Corporation (DMRC) has sent the fresh proposal to the Delhi and the state government as both the government’s are the equal shareholders in the corporation.

The Delhi Metro Rail Corporation (DMRC) director SD Sharma says wrote to the city’s transport department on June 9 that “metro will incur the costs of procurement on it’s own through ‘external borrowings’ and ‘internal accurals’.

Metro originally proposed for 582 coaches to Delhi government on January 11, 2017. But after the launch of magenta line and the rise in commuters it led to more coaches. Due to the delay on the part of the city government metro pitched for 200 coaches which eventually brought down demand to 164 and state that the other 36 will be bought through a separate bidding process.

Approval of DPR (detailed project report) for the procurement of 582 cars was taking time which led to rise of traffic on the section constructed in phase I and phase II due to the commissions of phase III sectors. A proposal was submitted to Delhi government as well as ministry of housing and urban affairs for their approval for the 200 cars as variation to phase II project. Sharma wrote “The funding has been proposed from external borrowing and internal accruals of Delhi Metro Rail Corporation (DMRC) with no financial burden on either Delhi government or Ministry of Housing and Urban Affairs. With the above background , it is requested that approval of Delhi government for procurement of additional 164 coaches as variation to Phase III project may please be communicated to this office”.

“The funding has been proposed from external borrowing and internal accruals of Delhi Metro Rail Corporation (DMRC) with no financial burden on either Delhi government or Ministry of Housing and Urban Affairs. With the above background , it is requested that approval of Delhi government for procurement of additional 164 coaches as variation to Phase III project may please be communicated to this office”, Sharat Sharma (then Director/Operations of DMRC) written to the Delhi government.

As the GST is making difficult to buy the new coaches but however chief minister Arvind Kejriwal and transport minister Kailash Gahlot says that the clearance will be given soon.

The total number of coaches being used are 1,654. According to Delhi Metro Rail Corporation (DMRC) data 244 trains currently operate on it’s 277 km network. The traffic will be increased on the lines built under the phase I and phase II projects after the completion of phase III.

To press more coaches into service Delhi Metro Rail Corporation (DMRC) says “It is under consideration of the government. But as this is a dynamic process, necessary action is being taken as per the requirements”. The proposal to buy 582 was arrived at the following revisions.

On 23rd October 2010 the proposal was submitted to Delhi and centre government that the Delhi Metro Rail Corporation (DMRC) board has approved a proposal to procure 916 coaches. However, the 334 coaches were under the DPR ( detail project report) of the proposed phase IV project, a decision was taken to go for 582 coaches.

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