Government to encourage private funding of Metro rail projects
The Union Urban Development Ministry is mulling over a proposal to increase the funding for public private partnership based mass rapid transportaion system, including metro rail, projects in major cities.
By PTI |
NEW DELHI: The Union Urban Development Ministry is mulling over a proposal to increase the funding for public private partnership (PPP)-based mass rapid transportaion system (MRTS), including metro rail, projects in major cities.
"We are considering the proposal to increase the central support to 30 per cent from the existing 20 per cent to encourage private participation in Metro projects," M Ramachandra, Union Urban Development Secretary told reporters.
"This will be given as viability gap funding and a final decision is likely to be taken soon", he said.
According to the proposal, the additional funding of 10 per cent will be disbursed from the Jawaharlal Nehru Urban Renewal Mission (JNURM) fund. The move aims at encouraging the private participation in metro projects as part of the MRTS in major cities.
Currently, metro projects are coming up on PPP model in Mumbai and Hyderabad. The government wants more developers to come forward for Metro projects.
The Metro project executed by the Delhi Metro Rail Corporation (DMRC) in the capital has proved itself as an environment-friendly, safest and fast urban transportation mode.
The 60 km route earmarked for Hyderabad is Miyapur-Chaitanyapuri, Secunderabad-Falaknuma and Taranaka-Hightech City.
"We are considering the proposal to increase the central support to 30 per cent from the existing 20 per cent to encourage private participation in Metro projects," M Ramachandra, Union Urban Development Secretary told reporters.
"This will be given as viability gap funding and a final decision is likely to be taken soon", he said.
According to the proposal, the additional funding of 10 per cent will be disbursed from the Jawaharlal Nehru Urban Renewal Mission (JNURM) fund. The move aims at encouraging the private participation in metro projects as part of the MRTS in major cities.
Currently, metro projects are coming up on PPP model in Mumbai and Hyderabad. The government wants more developers to come forward for Metro projects.
The Metro project executed by the Delhi Metro Rail Corporation (DMRC) in the capital has proved itself as an environment-friendly, safest and fast urban transportation mode.
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The DMRC has done a detailed project report on the Mumbai metro projects which are coming up in two phases. The total 80 km route is to link Versova-Ghatpokar, Colaba-Charkop and Charkoji-Mankhurd in Mumbai. The 60 km route earmarked for Hyderabad is Miyapur-Chaitanyapuri, Secunderabad-Falaknuma and Taranaka-Hightech City.
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