Delhi government to adhere to existing funding mechanism for metro


The Delhi government has decided to adhere to the existing 50-50 per cent equity sharing model funding mechanism for the proposed Delhi Metro Phase IV, despite raising objections to it earlier

The Delhi government has decided to adhere to the existing funding mechanism of metro projects, for the upcoming Delhi Metro Phase IV, as stated by the centre. The move intends to expedite the 104-km-long metro project that was approved by the AAP government in January, 2017.

In June 2017, urban development minister M Venkaiah Naidu, had written to chief minister Arvind Kejriwal, asking him to adhere to the 50-50 per cent equity sharing model. The letter to Kejriwal had come after the Delhi government had sought exemption from paying its share of the subordinate debt for central taxes, while clearing the Rs 50,000-crore project.

See also: Centre’s nod to fourth phase of Delhi Metro

“This is to inform you that the proposal sent by the government of NCT of Delhi, is not in conformity with the existing framework of funding pattern for metro rail projects, wherein central taxes are shared equally by the central and state governments as subordinate debt,” Naidu had said in the letter.

Reacting to Naidu’s letter, a Delhi government spokesperson said, “In principle, the government feels what share it gets from the centre is very insufficient. However, the CM has directed that despite this injustice being there, metro projects should not be delayed at any cost. The government will pay its due share.”

The proposed corridors are Rithala-Narela (21.73 kms), Inderlok-Indraprastha (12.58 kms), Tughlakabad-Aerocity (20.20 kms), Lajpat Nagar-Saket G-Block (7.96 kms), Janakpuri (west)-RK Ashram (28.92 kms) and Mukundpur-Maujpur (12.54 kms).

 

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