PMO’s intervention gets Lucknow Metro’s first phase on track

NEW DELHI: The final push from Prime Minister's Office (PMO) paved way for central clearance for first phase of Lucknow Metro on Thursday. Public Investment Board (PIB) cleared the project involving around Rs 7,000 crore investment.

"Now the proposal will come before Union Cabinet for approval. Subsequently, the work will gather pace as it can tap soft loan from bilateral and multi-lateral funding agencies," a central government official said. Earlier in 2013, the Union urban development ministry had accorded "in-principle" approval to the project.

Phase-IA of the project between CCS Airport and Munshipulia will cover 22.88 km. This includes elevated stretch of 19.44 km and underground section of 3.44 kms. The project will be implemented as a joint venture between the Governments of India and Uttar Pradesh.

The central assistance will be Rs 1,330 crore including equity of Rs 1,003 crore and the rest as subordinate debt. Equity of the Government of UP will also be Rs.1,003 cr. The balance has to be mobilized by the state government.

TOI on July 25 had first reported how PMO has asked the urban development ministry to expedite the project clearance.

The delay in giving central approval to the project had become a bone of contention between Narendra Modi government and Akhilesh Singh Yadav administration. UP chief minister Akhilesh Yadav laying the foundation stone without inviting the local MP Rajnath Singh had reportedly left the Centre unhappy.

Lucknow Metro Rail Corporation (LMRC) targets to commission first Metro rail service by December 2016 on the 8 km priority corridor from Transport Nagar to Charbagh Station.