The Hindu : New Delhi News : `Budget allocation won't affect Metro project'

Online edition of India's National Newspaper
Wednesday, Mar 02, 2005

New Delhi

New Delhi

`Budget allocation won't affect Metro project'

By Our Staff Reporter

NEW DELHI, MARCH 1 .Though in real terms the proposed allocation for the Delhi Metro project has gone down from Rs. 1,613.49 crores in 2004-05 to Rs 1,192.48 crores for the financial year 2005-06 in the Union Budget 2005, the Delhi Metro Rail Corporation is unfazed as the amount is considered sufficient for keeping Phase I of the project going and to meet the needs of the Phase-II, which is pending the approval of the Union Cabinet.

Sources said the Budget is silent as to which phase is covered by the allocation. But since Phase-II of the project is yet to be approved by the Union Cabinet, this means that the amount can only be spent on Phase-I which is being constructed at present. Thereafter, the DMRC will be able to draw on the funds for construction of Phase II.

However, as the requirement for Phase II of the project will be limited in the coming financial year, sources said the continuation of the project would not be affected. "Even after Phase II approved, construction will not begin straightaway. First, the detailed engineering will be undertaken and then the tendering process will begin. All this would take time and so the requirement of funds for actual construction of Phase II will be very limited in 2005-06 as pace of construction would actually pick up only in 2006-07,''the sources added

And should there be need for more funds mid-way, sources said that could be met through the supplementary grants which are given after the review that takes place during the year. Even in 2004-05, where a provision of Rs 1,013.71 crores had been made for the Delhi Metro project, later the amount was revised and increased to Rs 1,613.49 crores.

The only real shortfall for the Delhi Metro has been of Rs 100 crores which it had demanded for carrying out some of the works of the Phase-II. While this is a small setback, sources said it wouldn't affect as the detailed project reports for various proposed lines of Phase I have already been prepared and the works, which were sought to be done with this amount, can be started after the final clearance for Phase II is received. While about 63 km of corridors are being created under the Phase-I which is due to be completed in March 2006, another 50-odd kilometres are proposed to be added in the Phase-II for which the deadline has now been advanced from 2010 to 2008 .

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