The Delhi Metro Rail Corporation (DMRC) has proposed the "company formation" method for the upcoming Rs 17,935 crore metro rail project in Pune, ruling out the possibility of the public private partnership (PPP) or the build-operate-transfer (BOT) models for implementation.
The metro rail project in Delhi has been executed by a company DMRC, which raised funds from the government and loans. The metro rail projects in Mumbai and Hyderabad have been initiated on the PPP model. While the Mumbai project has so far proved to be successful, the project in Hyderabad is still in its infant stage.
DMRC chief E Sreedharan, in a meeting with the elected members of Pune Municipal Corporation (PMC), said, "The company formation method will help the project move faster against BOT or PPP models."
A report submitted by the DMRC says, the government should form a special purpose vehicle (SPV) named Pune Metro Rail Corporation (PMRC) under the Company Act, 1956. The formed SPV should have representatives of the state and central governments as its directors.
The report suggests, the state and the central governments would have 40 per cent equity stake in this company while the remaining funds could be raised from property development, loans and borrowings from market.
The report states, the PMRC can seek relaxation in value added tax, electricity and other taxes from the state government.
The report also suggests a first route of 16.58 kilometre length that beings from neighbouring Chinchwad town and runs along Pimpri, Shivajinagar up to Swargate. The second route has a proposed length of 14.92 kilometre and spans over Paud road, Deccan Gymkahana, Shivajinagar, Bundgarden, Yerawada up to Kalyani Nagar.
Apart from a short underground patch, the corridors would be formed on an elevated surface, the report suggests. The deadline to complete the first route is prescribed as year 2014.
