New Delhi: The construction of Delhi
Metro`s Phase-III, which envisages adding another 104 kms to
the network in Delhi, is proposed to be taken up in 2011-12,
the government announced on Monday and alloted Rs 1351 crore as
budgetary support for it.
With the Phase-II, that brought the Metro network in
Delhi to about 200 kms, almost nearing its completion, the
Government announced plans for the Phase-III for which the
Delhi Metro has already prepared detailed project reports.
"In 2011-12, Delhi Metro Phase-III and Mumbai Metro
Line III are proposed to be taken up," Finance Minister Pranab
Mukherjee said in his budget speech in Lok Sabha.
While the Centre will infuse Rs 452.2 crore as equity
to the Delhi Metro Rail Corporation, which it jointly owns
with the Delhi Government, it will provide Rs 101.28 crore as
Mukherjee also proposed allotment of Rs 1,351.86 crore
as budgetary support to the Delhi Metro. The amount is likely
to be used for the construction of the Phase-III.
Another Rs 650 crore is being proprosed as pass
through assistance for the new age transport system, which has
changed the way Delhiites travel.
The Phase-III project is currently being scrutinised
by a Group of Ministers and the Planning Commission to decide
the debt equity ration.
The decision on the funding pattern, which has been a
contentious issue, is taking time. On February 14, the Delhi
Metro had made a detailed presentation on Phase-III project to
the Planning Commission.
While the Planning Commission wants the debt equity
ratio to be increased to 50:50, sources said the Delhi Metro
has expressed its reservations against such high equity
investments by the Delhi and central governments.
The sources said the Delhi Metro has proposed a debt
equity ratio of 40:60 under which the two governments will
contribute 20 per cent each and the rest of the amount is to
be raised by loans from agencies like Japan International
Cooperation Agency (JICA).
It is likely that a consensus will be achieved on a
debt equity ratio of 40:60 per cent. The ratio for first and
second phases of Delhi Metro was 70:30 per cent.
The Delhi Metro has proposed six corridors under
the Phase-III plan to the Planning Commission.
The DPR was prepared by the DMRC last month after
which it was decided to extend the Phase-III network to 105
kms. Lending agency JICA has also given positive indications
to extend financial assistance to the project.
JICA has funded the Phase-I and Phase-II of the Delhi
Metro and is also funding other Metro projects in the country.
The Delhi government has been trying to get the DDA to
partly fund Phase-III but the efforts are understood to have
not succeeded. The Planning Commission was also of the view
that DDA should partly fund Phase-III so that the debt equity
ratio can be reduced to 50:50.