Metro rail: Centre not to fund more than 50 pc of the project cost

In a communication to the administration, the ministry has informed that it will not provide more than 50 per cent funds for the project. The administration will have to arrange for the remaining funds on its own.

The development assumes significance, as the cost of the project has escalated by Rs 2,700 crore. The earlier estimated cost of the project was Rs 10,900 crore. As per the revised detailed project report prepared by the Delhi Metro Rail Corporation, the project will now cost Rs 13,600 crore. And Chandigarh’s share, according to rough estimates, will be around Rs 5,000 crore.

The ministry has also asked the administration to explain how it intends to raise funds for the project.

Besides, the administration has also been asked to incorporate minor changes in the revised DPR, which is to be put up before the Union Cabinet for approval.
After getting a nod from the Union Cabinet, special purpose vehicle (SPV) named as the Greater Chandigarh Transport Corporation (GCTC) will be notified. The initial equity of SPV is around Rs 100 crore, which is to be shared equally by MoUD, Chandigarh, Haryana and Punjab.

When contacted, UT Finance Secretary Sarvjit Singh said that the administration would take up the matter with the ministry in the next few days.