New Delhi: The National Capital Region Planning Board (NCPRB) on June 15 decided to increase loan repayment tenure from 10 to 20 years for metro and rail-based projects, reduced interest rates for infrastructure projects by 0.5 percent and gave nod for implementation of three RRTS Corridors – Delhi-Alwar, Delhi-Panipat and Delhi-Meerut.
The 36th meeting of the NCRPB held under the chairmanship of Union Urban Development Minister Venkaiah Naidu, also asked participating states to prepare the sub-regional plans for newly added districts within three months time for which 100 percent funding will be provided by the Board.
The Board also directed the NCR states to resolve the inter-state connectivity issues at the earliest, which would help in decongestion of roads leading to Delhi from adjoining states.
“As metro projects are very capital intensive and have long gestation period, it needs support from financial institutions to make them viable.
“First step in this direction is announcement of increase in the loan repayment period from 10 years to 20 years including moratorium period of 5 years for repayment of principal for all existing and new metro/ rail-based projects with financial assistance from NCRPB,” Naidu said while addressing the meeting.
To provide a push for infrastructure development, the interest rates on funding from NCRPB was reduced from 7.50 percent to 7 percent for priority sector projects, while it was reduced for land development projects from 9.25 percent to 8.50 percent.
The priority sector projects include water supply, sewerage, solid waste management, drainage, metro/rapid rail, road, expressways, affordable housing, whereas the land development projects include residential and industrial projects, commercial and office buildings and social infrastructure.
Naidu said issues related to Regional Rapid Transit System (RRTS), a rail-based system, have been resolved and further work on these three corridors, namely, Delhi-Alwar, Delhi-Panipat and Delhi-Meerut could be started immediately.