Mumbai, June 21: Prime Minister Manmohan Singh today laid the foundation stone of the phase-I of the Mumbai Metro project. Approved on May 18, the phase-I of the Rs 19,500 crore Mumbai Metro is set to redefine the lifeline of the metropolis.
The ceremony, held at Vikhroli in Northeast Mumbai, signals the start of the Mass Rapid Transit System (MRTS). The launching of the project is seen as a step towards making Mumbai a world class financial hub.
“We need world class infrastructure in our cities. We have to invest in roads, airports, railway stations and many more amenities for modern life. Our citizens expect this from their government,” the PM said after laying the foundation stone.
Reiterating the importance of public transport PM Singh said that to undo pressure on Indian exchequer due to high oil prices and to prevent congestion of roads it is important to make public transport focus of India’s transport policy for the future.
“We are committing over Rs 50,000 cr in next five years for urban renewal,” the PM added.
Singh was accompanied by state Governor S M Krishna, Chief Minister Vilasrao Deshmukh, Reliance Anil Dhirubhai Ambani Group (RADAG) Chairman Anil Ambani and Mumbai Metropolitan Commissioner T Chandrashekhar at the ceremony.
Union Ministers Sharad Pawar, Jaipal Reddy and Murli Deora and Ambani`s mother Kokilaben, were also present on the occasion.
The consortium led by Reliance Energy (REL) and MMRDA had bagged the contract for the Rs 2,356 crore phase I and work on the first corridor - the 11-km long Versova-Andheri-Ghatkopar route – is expected to go on full swing by October.
“We would start the ground work soon after the foundation laying,” the MMRDA commissioner said.
After a long-drawn stalemate over the high viability gap funding (VGF) between the consortium and the government, REL decided to drastically cut its viability gap funding from Rs 1,251 crore to Rs 650 crore and thus bagged the contract.
The Rs 650 crore VGF will be met through Union and state government resources, he said.
A special purpose vehicle (SPV), consisting of REL and MMRDA, will be executing the project. Phase-I is likely to be completed by 2009.
The entire Versova-Andheri-Ghatkopar route will be on ‘Standard gauge’ elevated rails with 12 stations. It will have a carrying capacity of 60,000 passengers per hour, with the commuting time on the entire stretch reduced to 21 minutes from the present 70 minutes.
MMRDA will hold 26 per cent equity in the SPV for which a provision of Rs 134 crore has been made. The project will run on build-own-operate-transfer (BOOT) basis for 35 years, of which the first five years will be the construction period.
French company Connex and Hong Kong MRT are the other members of the consortium, and they will provide the technical know-how.
Mumbai Metro will be 146.5 km long and estimated to cost Rs 19,500 crore.
The first phase would be fully functional by 2011, second phase by 2016 and third phase by 2021.
The proposed fare structure is Rs 6 up to 3 km, Rs 8 for 8 km and Rs 10 for a distance over 8 km.
Bureau Report
