Title - Taxing fuel to pay for monorail

The government will impose a five per cent surcharge on fuel sold in the State, for 10 years, to finance Mass Rapid Transit Systems (MRTS) like the monorail projects coming up in Kozhikode and Thiruvananthapuram. The decision has figured in the government order approving the Detailed Project Report (DPR) prepared by the Delhi Metro Rail Corporation (DMRC) for introducing monorail in the 23-km Medical College Junction-Ramanattukara stretch in Kozhikode city and according administrative sanction for the 14.2-km first phase from Medical College Junction to Meenchanda.Separate orders are to be issued to collect fuel surcharge and to exempt the project from all State taxes and duties. The phase I of the Kozhikode monorail project is estimated to cost Rs.1,991 crore and is scheduled for completion by September 2015.A special purpose vehicle (SPV) — Kerala Mono Rail Corporation — with the Chief Minister as chairman and comprising Ministers for PWD, Industries, Power, Finance, Urban Affairs, Panchayat and Health; Principal Secretary, PWD; Additional Chief Secretary, Transport; and CEO, Kerala Road Fund Board; will implement the monorail projects in Kozhikode and Thiruvananthapuram.The administrative, financial, and technical matters of the project will be decided by the board of directors which will have a technical expert in due course. However, government’s sanction will be needed for taking policy decisions. The project will be executed through international competitive bidding.

Two stages

The first stage of the project consists of land acquisition and civil construction, under government initiative, on the lines of the proposed Vizhinjam project.

The second stage, comprising procurement of rolling stock, signalling, telecommunications, operation, and maintenance will be in public-private partnership mode. DMRC will be engaged directly as a turnkey consultant for the project.

The SPV will negotiate with DMRC the detailed terms of reference covering the scope of works, terms and conditions, and the fee for executing the project. The options of raising funds through bonds, domestic or foreign loans, Viability Gap Funding or a combination of them will be explored.

The Centre will be approached to exempt the project from all Central taxes for three years. If exemption is not granted, the Centre will be urged to sanction a grant equivalent to 50 per cent of the Central Taxes and Duties applicable for the project. The balance 50 per cent will be borne by the State.

The alignment of the monorail will be along the middle of the PWD roads and will be fully elevated. The 15 stations and platforms will be above the road. The depot has been proposed at the vacant land near the Pain and Palliative Clinic of the Kozhikode Medical College.

No driver

All stations will have elevators and the Medical College and Meenchanda stations will have escalators. The three-car rake will be able to carry 525 passengers. The plan is to run the trains without driver but it can also be operated using a driver. The total power supply needed for the project is 5 MVA. Traction voltage will be 750 V (DC). There will be two receiving substations, one at the depot and the other at Meenchanda.

Of the 10.654 hectares of land needed, only 1.582 hectares is private land. The balance 8.552 hectares is government land and 0.518 hectares belong to Railways.