Bihar cabinet approves formation of Patna Metro Rail Corporation for Metro Rail Project

Krishtina D'Silva Posted on: 2018-09-26 10:59:26 Viewer: 1,200 Comments: 0 Country: India City: Patna

Bihar cabinet approves formation of Patna Metro Rail Corporation for Metro Rail Project

Patna: The Bihar Government given approval for formation of Patna Metro Rail Corporation Limited (PMRC) on Tuesday for the implementation of Patna Metro Rail Project in the capital. Addressing the reporters after the meeting of the Council of Ministers held under the Chairmanship of Chief Minister Nitish Kumar, Sanjay Kumar, Principal Secretary, Ministry Secretariat, said that the Council of Ministers has approved the formation of Patna Metro Rail Corporation Limited (PMRCL).

He said that the Council of Ministers approved the formation of the Special Purpose Vehicle (SPV) named PMRCL and a sum of Rs.2000 crores capital fund approved for implementation of the project. Sanjay Kumar said that the Chairman of this SPV will be the Principal Secretary of the Department of Urban Development and Housing and will be the representative of Finance, Road Transport and Energy departments in its Board of Directors.

In addition, the MD will be nominated by the State Government. Indian Railways owned RITES has submitted the DPR related to the Patna Metro Rail project on September 20 to the Urban Development and Housing Department which has to be presented before the Council of Ministers for approval, after which it will be sent to the Central Government. Sanjay Kumar said that the cabinet has also approved the scheme related to the construction work of 'Bapu Tower' at a cost of Rs.84.49 crores in five acres of land in Patna city's Gardanibagh mohalla.

He said that the cabinet paid the remaining wages of employees of 15 units of Bihar State Sugar Corporation Limited, namely, Banmankhi, Goral, Warisiliganj, Samastipur, New Sawan, Hathua, Guraru, Lohat, Siwan, Laurea, Sugauli, Bihta, Motipur, Rayam and Sakri. Rs.127.53 crore has been approved by the Bihar Contingency Fund to pay in advance. He said that the cabinet has approved the acceptance of grant of Rs 5 lakh due to criminal, natural calamity or violent incidents or death due to accidents, from the level of District Officer, to the elected representatives of three-tier Panchayat Raj Institutions and Village Kachhari.

Starting with capital of two thousand crores, Patna Metro Rail Corporation has been entrusted with the responsibility of implementing Metro Rail Project. In the 5000-share company, the share of the city development department is 98.9 per cent. The City Development Department will have 4940 shares, while finance, transportation, path construction, energy, planning and development departments and the Regional Commissioner will have 10-10 shares.

The Chief Secretary of the Town Development Department or the person nominated by him will be the Chairman of Metro Rail Corporation Limited. The State Government will appoint the Managing Director. Principal Secretaries of Finance, Urban Development, Transport, Path Creation and Energy Department have been included in the Board of Directors.

The format of the corporation will be changed after the approval of the center The approval of the Metro Rail Project by the Central Government will change the nature of the Patna Metro Rail Corporation (SPV). The representatives of the Central Government will be the Chairman of this company, while the Managing Director will be the representative of the State Government. Apart from this, five representatives will be nominated by the center and five state government.

What will be the advantage? Now after the approval of the formation of Patna Metro Rail Corporation Limited (SPV), all the decisions related to the Metro will be decided independently. It has been formed on the basis of Company Act. Patna Metro Rail Corporation will operate the project with a loan from the state and central government and loan from Asian Development Bank (ADB).

Meanwhile, RITES has submitted the revised DPR to the city development department, prepared under the new Metro Rail Policy 2017. At present, the proposal has been sent for the approval of the Public Finance Committee. After the approval of the committee, it will be sent to the cabinet. The proposal is likely to be sent to the Central Government in the next month.





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