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Arun Jaitley grants Rs 1,007 cr for Metro’s Phase-III

On completion, Phase-III will add 140 km to the existing operational network stretching over 190 km.

By: Express News Service | New Delhi |
Updated: March 1, 2015 2:31:08 am

Funds allotted to Delhi Metro in the Union Budget saw a 22 percent rise, with over Rs 4,200 crore being allotted to it. A total of Rs 4,259 crore has been allocated to the Delhi Metro Rail Corporation (DMRC) – an increase of Rs 788 crore from the last year’s Budget allocation of Rs 3,470 crore.

Of the total amount, DMRC has been provided Rs 1,006.64 crore as equity for its Phase-III project.

DMRC is co-owned by the Union and the state government, which each hold 14 per cent equity in the project. This equity is the contribution of the Ministry of Urban Development towards developing the Delhi Metro.

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The Budget also provides for a subordinate debt of Rs 530.18 crore for Phase-III to pay for land acquisitions as well as central taxes.

Dr Partha Mukhopadhyay from the Center for Policy Research (CPR) explained that this debt needs to repaid by the DMRC to the government after repaying all other loans.

Apart from this, Rs 2,596.79 crore has also been given as Pass Through Assistance (PTA).

“This is the amount that the Indian government borrows from an external agency and passes to the agency that actually requires the funds.This loan needs to be repaid to Centre,” Mukhopadhyay said.

DMRC has also been given Rs 125 crore for expansion of the Metro network into NCR regions such as Faridabad and Bahadurgarh. At present, the per kilometer cost of developing the Metro network is roughly Rs 300 crore, sources said.

DMRC spokesperson Anuj Dayal said the budget is “adequate at present”. Senior DMRC officials also said that as the project progresses during the year, it would be possible for DMRC to approach the government for more funds in the form of revised estimates and upplementaries, as required.

On completion, Phase-III will add 140 km to the existing operational network stretching over 190 km.

Around Rs 42,000 crore has been sanctioned for Phase-III construction, a substantial part of which is being funded by the Japanese government.

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