Pune Metro Project to go forward on Delhi Metro model

Pune Metro project has been recomended on the line of Delhi Metro. As per this model project will not be done on PPP basis.

The standing committee has approved the 31.59-kmlong metro line one, which includes phase 1 from Pimpri-Chinchwad to Swargate via the Agriculture college to the Pune Municipal Corporation and phase 2 from Chinchwad to Nigdi and Swargate to Katraj. The total cost, excluding tax and land price, expected for this line is about Rs 6,000 crore. We have kept our options open and may opt for any one of the financial models suggested by the DMRC.”

The PMC, under the Special Purpose Vehicle Company Act, 1956, will form a company called the Pune Metro Rail Corporation Limited (PMRC). The proposal tabled by municipal commissioner Mahesh Zagade before the standing committee said that the DMRC had received two-third of the funds from the state government and one-third from the central government. “Following a similar line, for the proposed PMRC, the state and centre could contribute 40% funds, the state could provide another 11% through rehabilitation and land deals, the state and centre could give 12% funds in the form of additional tax, 7% could come from property development, this coupled with a loan component of 1.2% and a market borrowing of 30% would help implement the project,” said the proposal.

The standing committee also accepted Zagade’s recommendations of imposing a 50% cess on new vehicles and a surcharge on fuel, 2% cess on companies with an employee strength of more than 100, 10% surcharge on luxury hotel taxes — to raise funds which would help the PMC implement the metro project.

Nikam said, “The committee approved the DMRC’s DPR proposal and has forwarded the same to the state as well as the centre to seek 40% funds. The PMC and PCMC will have to make provision of 5% of the total cost in their annual budget. Also, provisions for repaying the loans to be taken should be made in the annual budgets of the PMC and the Pimpri-Chinchwad Municipal Corporation.”

Source :  http://content.magicbricks.com/standing-committee-gives-green-signal-to-pune-metro-plan