Finance Ministry approves Rs.30,274 crores for Delhi-Meerut RRTS project

Anushka Khare Posted on: 2019-02-13 09:30:46 Viewer: 887 Comments: 0 Country: India City: New Delhi

Finance Ministry approves Rs.30,274 crores for Delhi-Meerut RRTS project

New Delhi (Urban Transport News): The Ministry of Finance has sanctioned Rs 30,274 crore for Delhi-Meerut RRTS corridor. This was agreed in the last meeting of the Public Investment Board (PIB). Now the proposal will soon be brought to the cabinet. According to sources, the foundation stone for the Delhi-Meerut RRTS project will be laid soon. Despite the Delhi Government's objections, the Central Government has decided to implement the Reginal Rapid Transit System between Delhi and Meerut. On behalf of the Central Government's Public Investment Board, the Ministry of Housing and Urban Affairs has given the information about the approval of this project.

It is expected that in the last of this month, the central cabinet will also give its approval for this project. After this, it will formally be laid on its foundation. The central government and UP government will bear the cost on a large part of the project about Rs.30,000 crores, while 40 percent of the funds will be raised through a loan. Sources in the finance ministry said that even though the Delhi government has expressed its inability to pay for it, the Public Investment Board has decided to give it green signal. The reason for this was that during the discussion at the board meeting, it was told that if the project is delayed for one year then its cost will increase by Rs.1000 crores.

The National Capital Region Transport Corporation (NCRTC) which is implementing the RRTS project will start the project work on the ground soon with the amount received from the Central Government and the UP Government and if the financial condition of the Delhi Government become better then the amount should be taken at that time. In the Rs.30,274 crore project, the central government will give Rs.5,634 crores, while Rs.4,726 crores will be given by the UP government. Apart from this, a sum of approximately Rs.17,000 crores will be taken as loan. It was also informed that many financial agencies like JICA, ADB have shown interest in offering loans for Rapid Rail.

According to sources, in the meeting of PIB, NITI Aayog, Road Transport Ministery and Railways also supported the project. However, in the meeting, the question was raised that private partners would be searched to reduce its cost. But NCRTC said that Delhi Metro Rail Corporation (DMRC) is now planning to launch private metro trains for the first time after 15 years. However, in this project, it has been changed that a private partner will be searched for the automatic fare collection system for the RRTS and the private partner will have to invest Rs.270 crores for this project.

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