Jaipur Metro sells land to meet expenditure and fund future projects

Jaipur (Urban Transport News): The Jaipur Metro Rail Corporation Limited (JMRC) is auctioning Mix Land Use Plots in Metro Enclave Scheme at B-2 Bypass Road, Jaipur through e-Auction from October 18 to November 18, 2019. The amount received through the auction will be used to create a dedicated metro fund to meet expenditure and fund future metro projects. The amount will be transferred to a business account of JMRC that will be used for the expansion of Jaipur Metro Rail projects.

The Urban Development and Housing (UDH) department of the Rajasthan government will issue a notification regarding the creation of metro funds after examination of the nitty-gritty. The state government has decided to collect funds under three heads — levying entry tax on heavy vehicles, selling land and providing premium floor area ratio (FAR) along the metro corridor. “The Rajasthan government is hesitant to levy entry tax on heavy vehicles. The proposal is being considered again.

Once approval is given, a notification will be released by the UDH department and a committee will be constituted to monitor the funds", said a JMRC official. The corporation is also mulling a proposal to lease out land to increase non-fare revenue. As per the assessment, the Jaipur Metro Rail project is staring at an annual operating loss of Rs 41 crore for the next five years. The loss is estimated at 60% of the ridership.

If the loss is calculated at 20% ridership, the amount will rise up to Rs 71 crore a year. The Jaipur Metro Rail Corporation (JMRC) had taken a loan of Rs 969 crore from the Asian Development Bank (ADB) for Phase I of the Jaipur Metro project and it would be also a challenge to repay the loan. The 2.4-km long Phase 1B corridor of Jaipur Metro rail project is also delayed and no earning has started yet. The state government's installment will start in June 2021. Sources said that the route is very short and not feasible hence, serious efforts are required to bridge the gap between operational cost and expenses.