Gurgaon's privately-owned Rapid Metro, which recently completed its first year of operation and is spreading its wings further into the city, has said that the intervention of the new Haryana government is imperative to expand such infrastructure projects.
The Union government has shown keen interest in public -private partnership (PPP) in various sectors despite it not working out in favour of the Delhi Airport Metro Express with Reliance Infrastructure.
"The PPP model worked but they were not satisfied with it. The IL&FS rail is only in the business of PPP projects. But these projects require a good 40 per cent support from the government, otherwise these projects cannot be made feasible.
"I think the new state government has to understand this that they may promote a lot of PPP projects but unless these are financially feasible, nobody is going to bid for those projects," said Sanjiv Rai, CEO & MD of Rapid Metro Gurgaon.
Noting that the previous Congress-led government of Bhupinder Singh Hooda was very supportive of the project, he said the new Manohar Lal Khattar government will take time to settle down and then this dialogue would be taken forward with the senior officers of the state.
The Rapid Metro, an initiative of Infrastructure Leasing & Financial Services Limited (IL&FS) Rail, was launched last year on November 14 to boost and further strengthen connectivity within the Cyber City.
The 5.1-km-long three-coach rail system, which claims to be the country's first fully privately funded Metro Rail system, has completed its Phase I which has six stations originating from Sikanderpur. The second phase construction is underway while the project's third phase is being planned.
"For Phase 3 we had told the previous Congress-led Haryana government that unless we get financial support we won't be able to make the north extension," Rai said.
The construction works under Phase II is 35 per cent complete and is proposed to be over by 2016. The 7-km-long network will have five stations--DLF Phase 1, Sushant Lok, Sector 53-54, AIT Chowk, and sector 55-56.
"Right now we have already made an initial proposal to the state government that it should consider providing to us some kind of financial support so that the project can be made feasible. And there is a north extension going towards Dwarka and Udhyog Vihar for that we have made very clear that Phase III cannot be done unless there is government support," the Rapid Metro MD said.
