The Business Line 19.08.2009
Centre open to taking stake in Mumbai Metro
| President lays foundation for 2nd phase of the project. |
— Paul Noronha
The President, Ms Pratibha Patil, with the Union Minister of State for Communication, Information and Technology, Mr Jaipal Reddy, the Maharashtra Chief Minister, Mr Ashok Chavan, the Reliance Infrastructure Chairman, Mr Anil Ambani, and the Union Minister of State for Communication, Information and Technology, Mr Gurudas Kamat, at the Bhoomipuja of the Charkop-Bandra-Mankhurd Metro Rail Project held in Mumbai on Tuesday.
Our Bureau
Mumbai, Aug 18 The Centre is willing to take a 50 per cent stake in the third phase of the 64-km Mumbai Metro rail corridor.
Cost may exceed
The Minister for Urban Development, Mr Jaipal Reddy, said at a function here on Tuesday that with the cost of this phase tipped to exceed Rs 10,000 crore, the present financing models of public-private partnership and joint ventures may not work.
As the viability gap funding for such a big project would not be easy, the Centre would be willing to participate in its equity.
It is also keen to facilitate a soft loan through Japan Bank for International Cooperation, he said.
Critical link
The President, Ms Pratibha Patil, laid the foundation stone for the Rs 8,250-crore second phase of the Metro from Charkop to Mankhurd via Bandra, which would be a critical link between Navi Mumbai and the western suburbs.
The 32-km elevated corridor will have 27 stations en route.
BOT basis
The Mumbai Metropolitan Regional Development Authority will implement the project on a build, operate and transfer basis with Reliance Infrastructure of the Anil Ambani Group and SNC Lavin of Canada. It is expected to be commissioned by 2014 and will have a concession period of 35 years. The fare structure is Rs 8 for three kilometres, going up by Rs 2 for every five kilometres. By 2021, about 18.77 lakh passengers are expected to use the Metro.
Of the total viability gap funding of Rs 2,298 crore, the Centre has already contributed Rs 1,532 crore. Mr Reddy said that it had, to date, provided over Rs 4,500 crore through various forms of funding for the Metro project.
The Centre is also in the process of sanctioning infrastructure projects of over Rs 13,090 crore for Mumbai, he added.
Ms Patil said the Metro and Monorail projects were safe modes of transport which would save on travel time and reduce pollution.
“For a project such as the Mumbai Metro, planning, execution and management need to be handled properly,” she added.
viability gap funding
The Government of India and the MMRDA will provide Rs 1,532 crore and Rs 766 crore respectively, as viability gap funding for the project.
MMRDA plans to develop 146.5 km of metro network in three phases. In the first phase, it plans to build the metro line between Versova-Andheri-Ghatkopar, Charkop-Bandra-Mankurd in second phase while Colaba-Bandra line will be built in the third phase.
Work on the 11km Versova-Andheri-Ghatkopar is already going on and is likely to be completed by September 2010.