RailEnquiry

Chandigarh :For the Ludhiana Metro project, which will be built under the public private participation (PPP) mode with an initial estimated cost of Rs 10,300 crore, the state government will have to contribute Rs 1,800 crore to Rs 2,000 crore in the next 10 years while an equal amount will be contributed by the Central Government. The successful bidder of the project will bear the remaining cost of the project."The project is well within our fiscal reach. We will have no problem in funding it. For such projects, the Central Government makes a contribution equal to that of the state's share which will be 20 per cent in case of the Ludhiana metro project,” said a senior official dealing with the project. The initial estimated cost was of Rs 10,300 crore, but during the process of competitive bidding, it could come down to even Rs 8,500 crore, he said.With a total rail line length of 29 km, the Ludhiana metro will have two corridors. One will be from Ayali chowk to BBMB power house with a length of 15.8 km and the other from Gill village to Rahon road with a length of 14 km. Besides 27 metro stations, there will be four depots. About 170 acres of land will be acquired for the project. In fact, the state government will have to give the land free for the project and it will have to exempt the project from various taxes worth Rs 500 crore.

PROJECT ON TRACK


The metro will have the capacity to carry 25,000 persons during the peak hours and will be adequate to meet the traffic needs for the coming 20 to 25 years.

"We have three options to fund the project," said the official. Every year, land and property deeds worth Rs 600 crore are registered in Ludhiana district. By raising the current rate of stamp duty by one per cent in the district, the government can earn about Rs 120 crore per annum to fund the project. "The second option is to levy metro cess on tickets. The minimal rate of the ticket has been fixed at Rs 12.50 and the maximum at Rs 35. By levying Rs 3 cess on a ticket costing Rs 12.50 and Rs 10 on a ticket costing Rs 35, the government can earn Rs 60 crore per annum.

"The third option is to develop two metro townships, each spread over 1,000 acres, near the two terminating points of the metro. The government can easily raise Rs 1,500 crore by developing the two townships through its urban development agencies.

"Moreover, even if no additional burden is put on the people by raising the stamp duty etc, it will not be difficult for the government to spare Rs 180 to Rs 200 crore per annum to fund such a prestigious project, whose first phase is likely to be completed by 2018," said the official.

The state Cabinet has already approved the detailed project report (DPR) for the Ludhiana Metro Rail Project prepared by the Delhi Metro Rail Corporation.

About the project

The metro will be built under the public private participation (PPP) mode with an initial estimated cost of Rs 10,300 crore

The Punjab Government will contribute Rs 1,800 crore to Rs 2,000 crore in the next 10 years and an equal amount will be contributed by the Central Government

The successful bidder of the project will bear the remaining cost

About 170 acres of land will be acquired for the project

The state government will have to give the land free for the project and it will have to exempt the project from various taxes worth Rs 500 crore

Funding options

Option I: One per cent increase in the stamp duty for registration of land and property deeds. The government can earn about Rs 120 crore per annum

Option II: Levy metro cess on tickets. By levying Rs 3 cess on a ticket costing Rs 12.50 and Rs 10 on a ticket costing Rs 35, the government can earn Rs 60 crore per annum

Option III: Develop two metro townships each spread over 1,000 acres near two terminating points of the metro. The government can raise Rs 1,500 crore

Metro capacity

The metro will have the capacity to carry 25,000 persons during the peak hours

It will be adequate to meet the traffic needs for the coming 20 to 25 years

Metro coverage

With a total rail line length of 29 km, the Ludhiana metro will have two corridors

One corridor will be from Ayali chowk to BBMB power house with a length of 15.8 km and the other from Gill village to Rahon road with a length of 14 km

Besides 27 metro stations, there will be four depots