The recommendations were made following a nearly three-month-long study. (Express Photo/Praveen Khanna)
Citing potential “substantial losses”, the Delhi government’s finance department has said a “clear no” to the proposed Rithala-Narela (21.73 km) and Tughlakabad-Terminal 1 (22 km) Metro corridors under Phase IV, while clearing the other four. The recommendations were made following a nearly three-month-long study.
The 22-km-long Tughlakabad-Terminal 1 corridor was one of the three lines identified as “priority” by the Delhi Metro. The four lines that have been cleared include Janakpuri West-R K Ashram (28.92 km), Mukundpur-Maujpur (12.54 km), Inderlok-Indraprastha (12.58 km ) and Lajpat Nagar-Saket G Block (7.96 km), a top official said. They now await Cabinet clearance.
It is learnt that the government’s view is that the Metro should first observe how the cleared corridors fare upon being made operational. “After due diligence, we have found that the losses would be substantial. Why spend Rs 550/km when people won’t avail the facility?” an official told The Indian Express.
Sources said that the finance department pointed out to the chief minister that a “2011 Union Cabinet decision, which was not brought on record”, compels the Delhi government to bear all operational losses that any Phase III or Phase IV corridor would make.
“The government is wary of the potential burden it may have to bear in the form of operational losses if the Phase III and Phase IV corridors turn loss-making. Clearing the two proposed corridors would mean that the losses may be substantial,” a source said.
Metro’s Phase IV was estimated at nearly Rs 55,000 crore. The Delhi government and the Centre follow a 50-50 equity sharing model in the Delhi Metro Rail Corporation (DMRC). It is not immediately clear if the government will go ahead with the department’s recommendations or examine the matter further. However, sources said the department has sent its final view and has not been asked to take a further look into the issue.
“The capital expenditure (money required to set up the infrastructure) can be managed but the fact remains that the Delhi government has to meet the operational losses alone. There’s always a fight for money in the government. Everything is based on ridership, cost impact,” an official said. Phase IV has already been delayed by over two years.
4 lines get nod
* Janakpuri West-R K Ashram (28.92 km)
* Mukundpur-Maujpur (12.54 km)
* Inderlok-Indraprastha (12.58 km )
* Lajpat Nagar-Saket G Block (7.96 km)