Municipal corporation now to forward it to union government for inclusion in budget

PUNE: The Pune Metro Railway project  took a big step towards becoming a reality on  Tuesday, when the standing committee of the Pune Municipal Corporation (PMC) unanimously accepted the detailed project report (DPR) on it prepared by the Delhi Metro Rail Corporation (DMRC) and forwarded it to the central government, sounding extremely optimistic that it would be included and cleared in the union budget to be tabled next month.

While the standing committee has accepted the entire DPR for the 75.5 km metro route, it has currently sought funds only for the first phase comprising 31.52 km, which is estimated to cost about Rs 6,000 crore, standing committee chairman Nilesh Nikam told reporters soon after the standing committee meeting. The cost is based on estimates prepared in June 2009.

The PMC, through the DPR, has proposed that the central and state governments bear 40 per cent of the metro project, 11 per cent from state government for land acquisition and rehabilitation, another 12 per cent from the state government in tax rebates, 1.2 per cent through GICA loan, 1.2 per cent through market borrowing, 7 per cent through property development and the rest through BOT or PPP.

The PMC itself will bear just about 5 per cent or Rs 300 crore in the first phase.

Phase I comprises two corridors, that of Pimpri-Chinchwad to Swargate via Agriculture College, Shivajinagar, Pune Municipal Corporation (16.59 km) and Vanaz to Ramwadi via Nal Stop, civil court and Pune Station (14.93 km).

The standing committee has kept its options on whether to go for a Build Operate Transfer (BOT) or Public Private Participation (PPP) wide open.

However, what raises most concern is the heavy additional taxes that the metro will put on Puneites.

The Delhi Metro Rail Corporation, has interestingly said that considering the passenger load in Pune, the Metro service is unlikely to sustain through its own resources and proposed that the shortfall be collected through levying 50 per cent cess on all new vehicles, two per cent cess on all offices which employ more than 100 people, a 10 per cent surcharge on all star hotels.

It also proposes to allot  four per cent FSI to all properties along the metro route, where commercial concerns can be built, generating income for the Pune Metro Rail Corporation (PMRC), the special purpose independent  company that will be set up to  handle the service.

FUNDS: While the standing committee has accepted the entire DPR for 75.5 km route, it has currently sought funds for the first phase of 31.52 km, which is about Rs 6,000 crore,

OPTIONS: The standing committee has kept its options on whether to go for a BOT or PPP wide open

FUNDS: While the standing committee has accepted the entire DPR for 75.5 km route, it has currently sought funds for the first phase of 31.52 km, which is about Rs 6,000 crore, OPTIONS: The standing committee has kept its options on whether to go for a BOT or PPP wide open

PHASE I COMPRISES TWO CORRIDORS:

- Pimpri-Chinchwad to Swargate via Agriculture College, Shivajinagar, Pune Municipal Corporation (16.59 km) - Vanaz to Ramwadi via Nal Stop, civil court and Pune Station (14.93 km).