Financial model for city metro on cabinet table today

A meeting of the state cabinet has been called on Thursday with the financial model and proposed alignment of the Lucknow metro rail project on the agenda.

Written by Express News Service | Lucknow | Published: June 27, 2013 3:50 am

A meeting of the state cabinet has been called on Thursday with the financial model and proposed alignment of the Lucknow metro rail project on the agenda.

The state government had formed a special committee to suggest best possible alignment and the financial structure for implementation of the project,under the chairmanship of Rajiv Aggarwal,Secretary of Housing,which had submitted its report to the government last week.

According to a senior government officer,the recommendations of the committee on different aspects of the project,including financial structure,alignment,special-purpose vehicle etc would be considered by the cabinet for approval.

The committee had proposed the financial model adopted by Delhi Metro Rail Corporation Ltd,which is sharing of project cost between state and the central government in the ratio of 50:50. It has also proposed to reduce the length of the underground track to be constructed under the project as it required higher investment and escalated the cost of the project. The estimated cost of the project is around Rs 14,000 crore.

In the earlier alignment proposed by the consultant,Delhi Metro Rail Corporation,about 7 km-long underground track was proposed. However,on the recommendations of the committee,this underground track has been reduced to 3 km in the first phase. The fresh alignment would be considered by the cabinet on Thursday.

Among other things,clearance for the proposed first phase of the project from Amausi to Munshipulia crossing,called “North-South corridor” of about 27 km,would also be sought.

Further,there is also a proposal to form a special-purpose vehicle for the project on the model of DMRC ltd and name it Lucknow Metro Rail Corporation Ltd.

“All these issues would be placed before the cabinet on Thursday for formal approval,” a senior officer said,adding,“It would be a first major and significant step for the project.”

The previous Mayawati government had decided not to pursue the project because of the huge cost involved and the estimated losses that had made the project non-viable. However,the present government had decided to take it forward and Chief Secretary Jawed Usmani had been personally monitoring the progress of the project for the past one-and-a-half months.

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