Delhi Metro Phase 4 work stuck on cost-sharing disputes

Anushka Khare Posted on: 2019-04-03 09:00:08 Viewer: 750 Comments: 0 Country: India City: New Delhi

Delhi Metro Phase 4 work stuck on cost-sharing disputes

New Delhi (Urban Transport News): The phase 4 project of Delhi Metro Rail Corporation (DMRC) is getting delay due to cost-sharing disputes between the Central Government and the Delhi Government. Last month ahead of the effect of model code of conduct, Central cabinet has given its nod for three metro lines under the phase 4 project, which was stuck for more than two years. But this project has hit another roadblock due to a fresh funding dispute between the Centre and the Delhi government.

On March 20, Delhi Transport minister Kailash Gahlot directed the transport department to tell DMRC not to start work on Phase IV project until it got further clarifications on the project’s funding. He said that the Delhi government’s share of the expenditure for the three corridors to be constructed by 2024 had increased by 30.86% after the approval received from the Union cabinet.

The DMRC projects are implementing under the 50-50 sharing ownership basis between the Central Government and the Delhi Government. Gahlot said, “The matter was brought to my notice when DMRC wrote to the Delhi government seeking Rs 200 crore to start initial works on the project. As per DMRC’s new funding plan, after the Centre cleared the three routes, the share of Delhi government increased to Rs 7,844.70 crore from Rs 5,994.50 crore that was earlier approved by the state Cabinet for the same lines.” The Delhi Cabinet had approved all six corridors of Phase-IV of DMRC projects on December 19, 2018, but the Union Cabinet approved only three “priority corridors” of the Delhi Metro’s Phase-IV to address traffic and rising pollution levels in the national capital.

The approved corridors are Aerocity-Tughlakabad, Janakpuri-RK Ashram and Mukundpur-Maujpur and the other three corridors which were put on hold are Rithala-Bawana-Narela, Inderlok to Indraprastha and Lajpat Nagar to Saket G Block. It has been expected that the three priority corridors will carry over 600,000 passengers in its first year which is about 22.5% of the Delhi Metro’s existing daily ridership of 22 lakh.

The Delhi Transport department has prepared a note to DMRC suggests that while the Delhi government’s expenditure share has increased, the overall cost of the project for the three lines has come down. According to the revised project plan, the three lines of Delhi Metro Phase 4 project and 244 additional coaches will cost Rs 24,948.65 crores instead of the Rs 28,865 crores approved by the Delhi Cabinet. “As per GOI’s approval, 100% of funds regarding subordinate debt for land cost and R&R (rehabilitation and resettlement) has been assigned to Delhi government.

This is in variation to the revised funding plan wherein funds towards subordinate debt for land was to be contributed by GOI and GNCTD in 50:50 ratio,” stated in the note. The project cost Rs 2,447.19 crores to be borne by the Delhi government in the account of land for the three lines only is more than what it was earlier asked to pay Rs 2,121.5 crores for all the six lines. On March 26, six days after the note was sent, the Delhi transport department issued a “conditional sanction” of Rs 200 crores to DMRC if the original funding plan would be restored. However, DMRC has started work on the Phase 4 project. According to the DMRC officials, the preparation of drawings, including structural drawings will take up to three months. The process of finalizing and floating tenders can only start after the drawings are prepared.

Construction work was expected to begin in October, but it is likely to be delayed following the latest tussle. The Union ministry of housing and urban affairs said it was yet to receive any fresh objection from the Delhi government on the project. Mukund Kumar Sinha, Officer on Special Duly (Urban Transport) and Ex-Officio Joint Secretary for Ministry of Housing & Urban Affairs said that we have not yet received any communication from the Delhi government. So, it would not be appropriate to comment at the moment. The initial deadline for completion of all the six lines of the Delhi Metro Phase IV project was December 31, 2022, which now has been extended to December 31, 2024. In 2017 and 2018, the project was delayed because the Delhi government refused to approve it in entirety saying it was “financially unviable” and after the project cost was slashed by Rs 10,000 crores the Delhi government cleared it.





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