FM to consider part-funding of Mumbai metro phase II
After declining to support the first phase of Mumbai metro rail project, the Finance Ministry is considering to partly finance the second phase of the project that is estimated to cost Rs 5,527 crore.
By PTI |
NEW DELHI: After declining to support the first phase of Mumbai metro rail project, the Finance Ministry is considering to partly finance the second phase of the project that is estimated to cost Rs 5,527 crore.
"We have recently received a proposal from Maharashtra government for the second corridor of Mumbai Metro Rail Project seeking Rs 1,658 crore assistance under Viability Gap Funding (VGF) Scheme of the Central government," a senior Finance Ministry official told the media.
He said the proposal has been sent to Urban Development Ministry, Law Ministry and Planning Commission for comments.
After getting their comments, the proposal will be considered for VGF funding, he said, adding once the project was sanctioned, the state government would call bids.
The second phase of the Mumbai metro project would connect Charkop, Bandra and Mankhund.
The nine-phase Mumbai Metro project was inaugurated by Prime Minister Manmohan Singh early this year and the first phase has already been contracted to Anil Dhirubhai Ambani Group (ADAG)-promoted Reliance Energy.
VGF for the first phase has however been turned down by the Finance Ministry on grounds that bids were awarded before notification of the scheme.
The bid was awarded to ADAG in early 2006, while VGF provisions were made in July this year.
"We have recently received a proposal from Maharashtra government for the second corridor of Mumbai Metro Rail Project seeking Rs 1,658 crore assistance under Viability Gap Funding (VGF) Scheme of the Central government," a senior Finance Ministry official told the media.
He said the proposal has been sent to Urban Development Ministry, Law Ministry and Planning Commission for comments.
After getting their comments, the proposal will be considered for VGF funding, he said, adding once the project was sanctioned, the state government would call bids.
The second phase of the Mumbai metro project would connect Charkop, Bandra and Mankhund.
The nine-phase Mumbai Metro project was inaugurated by Prime Minister Manmohan Singh early this year and the first phase has already been contracted to Anil Dhirubhai Ambani Group (ADAG)-promoted Reliance Energy.
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VGF for the first phase has however been turned down by the Finance Ministry on grounds that bids were awarded before notification of the scheme.
The bid was awarded to ADAG in early 2006, while VGF provisions were made in July this year.
The funding for the first phase, estimated at Rs 2,356 crore, is now being considered by Urban Development Ministry under Jawaharlal Nehru National Urban Renewable Mission, the official said.
The first phase of the Mumbai Metro project would run on a 11-km route to link Versova, Andheri and Ghatkopar.
The Maharashtra government has also proposed to build eight more corridors under the Mass Rapid Transit System (MRTS) project for Mumbai.
Sources in the government indicated that these new corridors can also ask for VGF, administered by the Department of Economic Affairs in the Finance Ministry.
The VGF is given to those public-private-partnership projects (PPP), which are in public interest but executers find them unviable because of the gap between cost and affordability of users.
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The Ministry have given in-principle approval to 17 projects involving Rs 3,970 crore of investments under VGF, and 14 proposals are pending.
The official said though under VGF, Ministry had a budget of Rs 500 crore in the current fiscal, but funds for projects would be granted in a phased manner over the next few years.
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