Thursday, Nov 27, 2014

Estimate revised, to cost PMC Rs 2,885 cr dearer

Written by Ajay Khape | Pune | Posted: August 22, 2014 4:21 am

Being approved five years after the Delhi Metro Rail Corporation (DMRC) prepared the first detailed project report, the Metro rail for Pune will now cost the Pune Municipal Corporation (PMC) Rs 2,885 crore more, as per the revised project estimate.The project had become a contentious issue between the BJP-led Union government and Congress-led state government after the Centre cleared the proposal to start work on the Nagpur Metro rail.

As per the revised estimates, the project cost has increased by Rs 686 crore in a year and Rs 2,885 crore in five years.

“The Union government had asked for a revised estimate cost for Pune metro rail. The Delhi Metro Rail Corporation (DMRC) submitted the revised cost to be Rs 10,869 crore, which is Rs 686 crore more than the estimate made last year,” said a PMC officer.

The cost of project had increased as it had been pending for approval for long, he said, adding that the PMC had complied with all the processes that were asked of it. “The proposal with the revised estimate cost of project was sent on Wednesday evening. We hope that the union government will soon approve it,” officer said.

In 2009, the DMRC first submitted the proposal, estimating the project cost to be Rs 7,984 crore, which was revised last year, with a new estimate of Rs 10,183 crore. Now, the DMRC has estimated the project cost to be Rs 10,869 crore. This is the amount for the two routes from Swargate to Pimpri-Chinchwad and Vanaz to Ramwadi.

The minimum fare is now projected to be Rs 13, up from Rs 8 in the earlier estimate; the maximum, for travelling over 30 km, is Rs 45 — up from Rs 27. The two corridors are now expected to be completed by 2018-19, five years behind the original deadline. If the project begins in 2014-15, it would take at least six-seven years to be complete. The DMRC has identified fare box collections and incomes from property development, advertisement and parking as the sources of revenue for the Metro.

The civic administration said the earlier estimate was based on the cost of construction material in 2009; the revised estimate is based on 2014 costs, and it also factors in an increase of 7.5 per cent per annum cost until the completion of the project. According to the revised estimate, if work begins next year, corridor 2 is likely to be completed by March 2018, and corridor 1 a year later.

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