| Ludhiana Metro project poses fresh challenge for fund-starved Punjab govt by AllIsWell on 25 July, 2012 - 12:19 PM | ||
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 AllIsWell | Ludhiana Metro project poses fresh challenge for fund-starved Punjab govt on 25 July, 2012 - 12:19 PM | |
CHANDIGARH : The much touted Ludhiana Metro project, which the SAD-BJP government is brandishing as a feather in their cap, has posed fresh challenges for the fund-starved state government. Nearly 20% of the cost of the project has to be funded by the state, as the Centre pools in an equal share and the rest will be funded by the bidder who gets prestigious project.With empty coffers staring at the state government, raising nearly Rs 2,000 crore, is a herculean task. The metro project is expected to cost Rs 10,300 crore, as against Rs 8,500 crore, envisaged a few years ago. Twenty per cent of this cost will fall on the state government, along with the responsibility of providing nearly 170 acres of land free of cost, and exemption from all kinds of taxes, amounting to Rs 500 crore.The government, which is literally running from hand to mouth, struggling to meet with even daily expenses and salaries of its employees, is looking at ways and means to fund the project out of people's pockets. One of the options being explored by the financially crippled government is to impose one per cent extra stamp duty on all the land deals happening in Ludhiana district."Land and property deeds worth Rs 700 crore are registered in Ludhiana every year. We can generate Rs 120 crore per annum, even if we raise the stamp duty by one per cent. Another option is to tax the passengers and put cess on the tickets. This way we can generate Rs 60 crore per annum. But the third option is very viable - to develop metro townships which can help mobilize Rs 1,500 crore,"said a senior official in the government dealing with the project. | ||