The Hindu : New Delhi News : DMRC project aims at profit

Online edition of India's National Newspaper
Saturday, Dec 10, 2005

New Delhi

New Delhi

DMRC project aims at profit

Staff Reporter

Neighbouring States are not ready to bear the burden of any losses

NEW DELHI: With the Metro railway all set to travel outside the boundaries of the Capital, the Delhi Metro Rail Corporation is now devising ways and means to make the project a completely profitable one and to ensure that under no circumstances does it run into a loss as that could jeopardise it in its entirety due to the involvement of several States in the scheme.

According to senior Delhi Metro officials, while the neighbouring States of Uttar Pradesh and Haryana are keen on the project, they are not prepared to bear the losses if any. And as Delhi too would not like to shoulder the burden of these States, efforts are now afoot to put in place a fare revision and costing system that ensures that the Metro never runs into losses.

The matter was recently raised by the Uttar Pradesh Government while approving the project on December 2. In a rider, the State said that it was willing to finance the project but it wanted an assurance from the DMRC that it would not have to bear any burden of the losses.

Though several days have passed since the UP Government approved construction of the Metro corridor from New Ashok Nagar in Delhi to Sector 32 City Centre in Noida, the DMRC has still not received any official intimation from it.

Sources in the DMRC said the proposal would have to be approved by the Centre before it is put into the implementation mode. And in the meantime, the Corporation has asked the Noida Authority to clear a pending payment with respect to extension of Line III into Noida.

The UP officials have also been told to sign relevant agreements so that the project receives a boost.

The UP Government had on December 2 approved the 7 km link from New Ashok Nagar to Sector 32 Noida. With intermediary stations at Noida Sectors 15, 16, 18, Botanical Garden and Golf Course, the line would cost Rs 736 crores. While Noida would bear 85 per cent of the cost, the remainder would be borne by the Centre. Of the total amount, Rs 611 crores would go towards construction of the network, Rs 93 crores for rolling stock and Rs 32 crores for the cost of land. And while the Noida Authority would bear the cost of land, DMRC would provide for the rolling stock.

The Noida link is expected to be completed by June 2009. This would be exactly an year after the line reaches New Ashok Nagar under Phase II of the project. A part of the original Metro Master Plan 2021, the line is expected to provide better connectivity to this fast developing satellite township.

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