Pune: Officials of Pune Metropolitan Regional Development Authority (PMRDA) has approved Tata Reality Infra Pvt Ltd (TRIL) and Siemens Project Ventures as the companies for execution of the third metro line for Pune from Shivajinagar to Hinjawadi. The Rs 8,000 crore, 23.3-km corridor with 23 stations is to be executed on a Public-Private Partnership (PPP) model and will be the first project in India on DBFOT (Design, Build, Finance, Operate, Transfer (construction)) model after the new metro rail policy of 2017.
While addressing a press conference, PMRDA chief Kiran Gitte said that out of the three bidders, including IRB Infrastructures Limited, Tata Reality Infra Pvt Ltd (TRIL) and Siemens Project Ventures and ILFS Transportation Networks Limited, the Tata Siemens joint venture will be executing the project. Speaking on the funding part of the project, Gitte said that the Centre has approved Rs 1,200 crore viability gap funding (VGF) for the project. The Tata Siemens joint venture will have to bring in 60 per cent funding for the project, including 30 per cent in equity and 70 per cent in debt.
“The upper limit for VGF is set at Rs 2,400 crore and we have selected the Tata-Siemens joint venture as they have expertise in the field. While Siemens has expertise in execution of metro projects, Tata Infrastructure is strong in the field of infrastructure. The PMRDA has the authority to approve the bidder and now the proposal will have to be approved by the State and Central Finance Ministry. Following this, the work order will be given to the company and we are expecting the work to start by October. The project should take about 36 months to complete,” added Gitte.
While the State government had planned to put in Rs 812 crore in the project, now the government has decided to allocate land parcels to PMRDA instead of funds of Rs 812 crore. Guardian Minister Girish Bapat said that the survey of such land parcels will be done and then the government will allow the use of such land parcels for a period of 30 years. The State cabinet on Tuesday cleared the allocation of 5.60 hectares of government land worth Rs 165 crore government land in Balewadi for the Hinjawadi-Shivajinagar Metro and it will be utilised by the Tata-Siemens joint venture.