Chief secy to decide on Metro funding model on May 25

GHAZIABAD: The GDA and DMRC officials held a meeting on Tuesday to discuss funding models for two proposed metro extension projects — the 5.06km Vaishali to Mohan Nagar line and 5.11km Noida Sector 62 to Sahibabad line.
The discussions were held ahead of a meeting with the UP chief secretary on May 25 in Lucknow where one model will be chosen for the projects, the DPR for which was submitted in February this year.

Two models were discussed at the meeting, including the existing model under which the Dilshad Garden-New Bus station is being funded and a special purpose vehicle (SPV) model which is being implemented by the Lucknow Metro Rail Corporation (LMRC) and the Noida Metro Rail Corporation (NMRC).

Ritu Maheshwari, vice-chairperson of GDA, “The two funding models have their own benefits and drawbacks. We have asked the DMRC to prepare a separate report which will be presented before the chief secretary on May 25.”

Under the existing model used for Dilshad Garden-New Bus station metro line, the state government through its agencies — GDA, GMC, UP housing board and UPSIDC — is bearing 80% of the total cost while the remaining 20% is borne by the Centre.

“We now know the problem with this model, as agencies such as the GMC have expressed its inability to pay up their share while the rest have not paid up even though it’s been years since the project started,” said Maheshwari, adding, “This is an inherent drawback in this model and it will be mentioned in the report.”

Explaining the SPV model, which is currently in use in Lucknow, Noida, Meerut and Agra, Maheswari said, “The LMRC was incorporated in 2013 under the Companies Act and is jointly owned by the Centre and the government of Uttar Pradesh. An SPV model has been implemented in the Lucknow Metro Rail Project and we want a replica of it for the two projects in Ghaziabad. Under this model, it will give us the leverage to to set up our own independent depot, arrange for manpower. This means we will be independent of DMRC and can oversee the project from inception to completion.”

However, a focal feature of the SPV model, which has turned out to be a drawback for the projects, was that the minimum length of the project has to be over 30km.

But the GDA has found a way tackle this issue. It has proposed two new metro lines/extension from UP Gate and get majority of funds as loan from Japan International Cooperation Agency (JICA), said Maheswari. It is expected that through this model 50% of the total cost of the two extension projects could be raised through loan from JICA, while the state government will grant 30% the Centre will give remaining 20%, she said.

According to the DPR, the combined estimated cost of the two extension projects is Rs 4,048 crore.

“The two new proposed metro lines — UP Gate-Pratap Vihar-Dasna and New Bus Stand-Lal Kuan-Dadri metro line — meet the minimum 30km criteria for the SPV model and we have asked DMRC to incorporate it while preparing the final report,” said a GDA official.