NAGPUR: The Maharashtra
Metro Rail Corporation Limited's (
Mahametro) paid up capital has increased to Rs1,049 crore, with central and state governments each being allotted 50% of the equity shares. Nagpur and Pune's civic bodies have no equity shares in the company as of now though they are bearing some cost of the Metro Rail projects.
The Mahametro's board of directors in a meeting held on Friday decided to allot equity shares of Rs80 crore each to President of India (central government) and Governor of Maharashtra (state government).
As per the proposal, Rs460.52 crore was lying under share application money account, of which Rs380.52 crore pertain to the central and Rs80 crore to the state. "Mahametro's authorized share capital is Rs5,000 crore. Face value of one share is Rs10. Company had allotted equity shares of Rs888.90 crore to the central and state. Share application money of Nagpur Metro is Rs80.52 crore and Pune Metro's Rs300 crore. Therefore, it is proposed to allot equity shares worth Rs80 crore each to President of India and Governor of Maharashtra," the proposal said.
In Nagpur Metro project, the central and state are each bearing 20% of total project's cost of Rs8,680 crore. The Nagpur Municipal Corporation (NMC) and Nagpur Improvement Trust (NIT) are sharing 5% each (Rs434 crore each). Remaining 50% will come through loans. The NIT is giving funds and also land from its share while the NMC only land.
Similar pattern has been followed in Pune Metro rail project. Pune and Pimpri Chinchwad Municipal Corporations are bearing 10% of total project's cost of Rs11,420 crore.
The board also approved its
Risk Management Policy to complete Nagpur and Pune metro rail projects in prescribed time period, to avoid extra cost, reduce project cost, and to ensure quality and safety in the works.
It is also mentioned in the policy that the Mahametro shall explore possibilities of domestic loans or other avenues in case the central and state governments do not infuse fresh equity in the project. "To mitigate the risk, the company may frame a hedging policy and also consider factoring the additional loan burden in the costing model submitted to the fare fixation committee. This will make the system financially viable without the dependence on external cash subsidy for its operation from stakeholders," the policy said.
As per the policy, Risk Management Committee will be formed for framing policies and ensuring implementation. "Committee shall nominate Risk Managers who will be responsible for ensuring adoption of structured and consistent risk management approach through out the company," it stated.
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