Indian Railways News => Topic started by nikhilndls on Aug 31, 2013 - 15:56:53 PM


Title - Mumbai metro-I may miss September deadline, says Prithviraj Chavan
Posted by : nikhilndls on Aug 31, 2013 - 15:56:53 PM

The worst fears highlighted by Metroman E Sreedharan seems to be coming true for the Maharashtra government. Even as the Versova-Andheri-Ghatkopar first metro line misses its deadline time and again, issues over its fare and project cost have cropped up again and this means it may not be opened for public use by next month.There metro project cost has shot up from Rs2,356 crore to over Rs3,500 crore. When the negotiations between the state government and Reliance Infrastructure-led Mumbai Metro One Private Limited (MMOPL) over sharing the increased project costs and fares begins, the two options that the former will have to look at are taking over the project (on the lines of Delhi’s Airport Express) and increasing the fares. For years now, E Sreedharan has been vocal to warn state governments opting to execute metro projects using the PPP financial model by saying that this model has not been a success anywhere across the world. In India, Delhi has already witnessed a failed PPP metro rail project (again with Reliance Infrastructure). “I have been told that metro work is 95% done and the commissioner of Railway Safety is trying to look at safety issues. We do not want to put safety of people at risk; so, till the time safety certifications come, metro rail will not be opened for public,” said chief minister Prithviraj Chavan.

Therefore, it is not sure whether the first metro line being constructed by the MMOPL will be commissioned by 2013 end. 

When asked about demands from MMOPL to increase metro fares due to cost overruns, he replied: “This is where the question of a dispute settlement authority or mechanism arises in case of a project undertaken through the Public Private Partnership mode.”

Chavan said: “the third metro line between Colaba-Bandra-SEEPZ underground metro is not on Built Operate Transfer model.” But he did not clarify the picture if all the future metro projects will be on cash contract basis.

“The second metro line of Charkop-Bandra-Mankhurd will have to be cancelled.

The issue as of now is over bid guarantee of Rs50-60 crore, if it should be encashed or not,” announced Chavan.

The Mumbai Metro Transport Private Limited has not been able to implement the project due to lack of environment clearance.

Moreover, once the contract is scrapped the future of Charkop - Bandra - Mankhurd will be an underground metro.