Kerala - Kochi   

Metro: experts warn against BOT project

KOCHI: The elevated light metro-rail project proposed for Kochi might meet with a fate similar to that of the Mattancherry BOT bridge if it is handed over to the private sector, experts say.

The first BOT bridge project in the State ran into controversy after doubts rose about the projected cost of construction (Rs. 30 crores), the terms and conditions in the BOT agreement and the huge toll being levied on motorists. The expert opinion comes in the wake of the Union Planning Commission opposing a Centre-State joint-venture project that had been envisaged by the Union Urban Development Ministry and the State Government for the Kochi metro-rail. At present, the Ministry has supplied the Prime Minister with adequate data to show that a JV project would be best suited for Kochi and a final word from the PM is awaited.

The State Government recently spoke about the BOT option for metro-rail, despite it being unsuccessful in Hyderabad and is yet to start in Mumbai. All the other metro projects in the country – at New Delhi, Kolkota, Chennai and Bangalore, are Government controlled and their work has been progressing faster than in the two cities.

The Union Urban Development Secretary M. Ramachandran doubted whether private players in Kerala would be able to raise the around Rs. 3,000 crores that has been estimated for the Kochi metro-rail. “These rail projects will not be viable unless the Government steps in with help. This is because they may not bring in profits in the initial years. Moreover, the terms and conditions in the agreement would in all likelihood be in favour of the private firm and might not accord priority to public interest. Thus, the Government will among other things have to compensate the firm if there is inadequate passenger patronage,” he said.

In the case of the Hyderabad metro, the Andhra Pradesh Government had to hand over huge tracks of prime land in Hyderabad (for raising capital) to the firm Maytas Infra that has been awarded the contract for constructing the rails. The Citizens for a Better Public Transport in Hyderabad (CBPTH) had questioned several aspects of the agreement reached with Maytas. The organisation pointed out that the Greater Hyderabad Municipal Corporation alone stood to lose huge amounts in taxes as no levy was being imposed on the rail system. Moreover, there was no guarantee that the firm would not seek more government land if there was inadequate passengers. There was also the possibility of the firm seeking an extension of the lease period (after which the project would have to be handed over to the Government). In the wake of the Satyam controversy, the organisation demanded a thorough inquiry into the whole process which resulted in a consortium led by Maytas Infra bagging the Hyderabad project.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Seminar on wetlands
DYFI activist killed in Paravoor
Jacobite faction to hold prayer meet at controversial site
Bank employees’ meet concludes
Metro: experts warn against BOT project
Satyam fiasco affects techies in city
Pratyasha to hold cultural show
When love conquers circus artistes
Farm fete from January 16
Land deeds distributed
Snap ties with Israel, Centre told
Kochi today

Copyright © 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu