Pune Metro update

Two months after getting cabinet approval, the state government has finally submitted the Pune metro project plan to the Centre.
Union Urban Development minister Kamal Nath told Rajya Sabha that the Maharashtra government has approached the Centre and sought financial assistance to set up metro train network in Pune city. Besides Maharashtra, four other states/ union territories have approached the Union government for financial assistance.
In October, the state government had decided to go ahead with metro rail development in Pune. The state cabinet also revised the completion deadline of phase I from 2014 to 2021. The Delhi Metro Rail Corporation (DMRC) report for the Pune metro expected the project to be completed by May 30, 2014.
The revised estimate for the project is pegged at Rs.10,183 crore. Now, the project on the Chinchwad-Swargate corridor will cost Rs.6,960 crore and the Vanaz-Ramwadi route will cost Rs.3,223 crore. The total cost (for both corridors) has increased by nearly Rs.2,199 crore as compared to the estimated cost in 2009.
Kamal Nath made it clear to Rajya Sabha members that as per National Urban Transport Policy (NUTP), 2006, the Government of India provides funding to the extent of 20% of the cost of metro rail projects either through equity and subordinate debt (for 50% Central taxes/duties) if the project is taken up through a 50:50 jointly owned Special Purpose Vehicle (SPV) of Government of India and the state government or through Viability Gap Funding (VGF) if the project is taken up in Public Private Partnership (PPP) mode.
Sudhir Krishna, union secretary, urban department, had said at the 6th Urban Mobility India Conference that metros can contribute to generation of funds and had announced that the Pune Metro plan has a projected Financial Internal Rate of Return (FIRR) of 11.25%. FIRR is Centre’s assessment of the financial viability of a project.
“Once the Union government gives its nod for the project, plans will be chalked out to call joint meeting of the Pune Municipal Corporation (PMC) and state UD officials. The financial model of the Pune metro is based on the DMRC report. Once the Centre makes its stand clear, the state will take further steps,” said a state UD official.