Centre considering part funding of metro project in Mumbai
New Delhi, Mar 2 (UNI) The Maharashtra government has proposed to construct a 15 km-long light rail transit system on the Versova-Andheri-Ghatkopar corridor on Build, Own, Operate and Transfer basis at an estimated cost of Rs 1,500 crore, Union Minister of State for Urban Development Ajay Makhen told Parliament.
For this, the state government had sought a contribution to the extent of 50 per cent of the equity and viability gap funding, he said in response to a question whether the Maharashtra government had sought the Centre's approval and sanction for 95 per cent equity participation and 50 per cent viability gap funding for the mass rapid transit system.
A Detailed Project Report for the project had been received in February 2005 and 'in-principle' approval for it had been given by the Planning Commission in April 2005, he said.
The state government had also undertaken a bidding process to identify a private promoter for the project, he added.
However, the requirement of financial assistance from the central government was yet to be considered under the scheme of viability gap funding announced by the Finance Ministry, Mr Maken said.
A firm estimation of the requirement of funds would be possible only after the bidding process undertaken by the state government was complete, he stated.
The minister clarified that there was no viability gap funding for the Delhi Metro Rail Corp. However, the total equity construction from the union government was about 15 per cent of the project cost and excise and customs concession had also been granted for DMRC, he added.
In reply to another question he said, the state government, jointly with the Railways, had initiated Mumbai Urban Transport Project to improve traffic and transportation situation in Mumbai Metropolitan Region, with financial aid from the World Bank.
UNI IP AD PC1247