Centre gives nod for 20 pc VGF for Metro rail route

Sakal Times
Friday, 7 July 2017

The Ministry of Finance has approved VGF up to Rs 1,600 crore. After approval of the Urban Development Department, the proposal will be sent to the Cabinet for final approval.

Pune: The Central government on Thursday gave its in-principle nod for up to 20 per cent Viability Gap Funding (VGF) for the 23.3-km Metro rail route from Hinjewadi to Shivajinagar. The route is being executed by the Pune Metropolitan Regional Development Authority (PMRDA). The elevated route will be built through the PPP model, said Kiran Gitte, CEO and Chief of PMRDA.

The Ministry of Finance has approved VGF up to Rs 1,600 crore. After approval of the Urban Development Department, the proposal will be sent to the Cabinet for final approval.

Gitte said Siemens AG, Tata Realty & Infrastructure Ltd,  Infrastructure Leasing and Financial Services Ltd (IL&FS) and IRB Infrastructure Developers Ltd, have submitted Request for Quotation (RFQ).

He said a condition was included for the RFQ-submitting companies to have net worth amounting to Rs 1,600 crore. As per the PPP model, both the Centre and the State governments are expected to provide up to 20 per cent VGF each.

Gitte said the State has expressed its inability to provide money towards VGF. This component will be generated through monetisation and commercial or residential use of land.

Gitte said a team of PMRDA officials will visit Hyderabad to study the commercial utilisation of spaces and Floor Space Index (FSI) in Hyderabad Metro rail project.

The bidding document will include details about such land parcels, where commercial utilisation is possible. To prepare this document, a transaction adviser will be appointed.

The infrastructure companies bidding for the Shivajinagar-Hinjewadi route will have to generate 60 per cent amount of the total estimated project cost ie. Rs 7,500 crore. Gitte said he is hopeful that the project will reach the signing concessional agreement stage within six months.

Metro car shed at Mauje Maan
PMRDA chief Kiran Gitte said District Collector Saurabh Rao has announced a compensation package for land owners at Mauje Maan village. The discussion with the farmers from the village took place on Thursday. He said 50 acres of land will be acquired at Mauje Maan for constructing the car shed.

DPR for Ring Road TPS
Meanwhile Detailed Project Report (DPR) for a Town Planning Scheme (TPS) along the 128 km Ring Road will be made by two companies including  Mars and Prime Move by October this year, said PMRDA chief Kiran Gitte. He added that a PMRDA team recently visited Ahmedabad to study execution of TPS along the Ring Road there. The layout of TPS along the first stage joining Satara, Solapur and Ahmednagar roads will be prepared by October. The report will include location of roads, lights, and sewage system. Land will be given for  Residential Affordable Housings project, added Gitte.

About Lavasa
PMRDA was accorded Special Planning Authority for Lavasa Corporation. PMRDA Chief Kiran Gitte added that the permissions given after December 4, 2015 will be looked into by PMRDA.

 

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