Delhi Metro Phase-IV project’s land cost to be shared equally by the Central and Delhi government

The Union Cabinet approved the decision of sharing 50% of the land cost with the Delhi government for three priority corridors of Phase-IV of Delhi Metro. The three approved corridors of Delhi Metro Phase-IV project include Aerocity to Tughlakabad, R.K Ashram to Janakpuri and Mukundpur to Maujpur. 

As per a cabinet statement, the decision is an outcome of the revision in funding pattern stating the ratio of 50:50. This is in pursuance of the amendments to Metro Rail Policy, 2017 applicable only for Delhi in compliance with the Supreme Court order dated 6th September 2019. The Supreme Court, in its order, had upheld the provisions of Metro Rail Policy, 2017. The provisions were regarding bearing of operational losses and repayment of the external loan and currency fluctuation cost by the State in case the special purpose vehicle (DMRC in this case) fails. The apex court had directed to depart from the policy to be applicable only in the case of Delhi and to share land cost in the ratio of 50:50 between the Centre and the Delhi government. According to the Cabinet statement, the total cost of the project amounted, Rs 24,948.65 crore remains unchanged. Following the decision, the cabinet in its statement informed that, “The amount of external loan from bilateral/multilateral agencies which Delhi Metro Rail Corporation (DMRC) has to repay increases from the existing Rs 11,462.60 crore to Rs 12,930.91 crore with a net increase of Rs. 1,468.31 crore”.

The government of India had approved these three corridors of the Delhi Metro Phase-IV project in March 2019. The completion cost then was Rs 24,948.65 crore for which the funding pattern was kept in line with provisions of Metro Rail Policy, 2017.

In April 2019, the Delhi government, however, directed DMRC not to start work on the sanctioned corridors unless Ministry of Housing and Urban Affairs revises the cost-sharing pattern in tune with approval concurred by them. After the intervention of the Supreme Court, the work was started in July 2019.

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