Mumbai: Restriction placed by Bombay High Court on Mumbai Metro work on Metro 3 might lead to an estimated loss of Rs 6,100. As per the orders metro work cannot be carried out from 10 pm to 6am – the ban is on late night construction. This ensued after a complaint from Cuffe Parade residents.
The ban has resulted in a loss of nine-month delay in work. The officials feel that if the ban is imposed for three more months, the project is likely to run in losses. A projected annual loss comes around Rs 6,133 crore to the economy as per the experts associated with underground Mumbai Metro rail project.
As per the plan the Colaba-bandra-Seepz Metro 3 corridor construction comes to over Rs 23,000. The project is taken by Mumbai Metro Rail Corporation (MMRC).
The website of MMRC shows the detailed project report that indicates the costs that would be saved via operation new line. These are the FIRR (financial internal rate of return) and EIRR (environmental internal rate of return).
The EIRR indicates the advantage in terms of saving fuels bringing down pollution levels. These eventually help in protecting the environment and helps in economic development. FIRR on the other hand indicates the financial returns from the project.
Project FIRR is 2.19% and EIRR is 17.99% as per MMRC’s annual projection. Both the parameters together accounts for 20% of the project coast which comes to around Rs 4,600 crore. As per affidavit by MMRC the daily loss due to delay in building work was estimated at Rs 4.2 core or 1,533 crore annually.
If all the cost is added up it comes to around Rs 6,133 crore, a sum that can be used to construct 10km underground metro corridor.
SK Gupta, project director of MMRC stated the figures are arrived after micro assessment by experts and consultants. This is visible and invisible impact on the economy and the ban has adversely started affecting MMRC.