Title - UP to seek funding from Centre for Lucknow Metro Rail project

LUCKNOW: After UP cabinet nod to the detailed project report (DPR) on the Metro Rail project in Lucknow, the ball is now in the Central government’s court. The project execution would mainly depend on the Central funding, without which the project may not get implemented. The project holds significance for the Samajwadi Party which is gearing up for the Lok Sabha elections.

Sources in the housing department said the state government will now follow the Delhi Metro Rail Corporation (DMRC) model wherein the Centre and the state will together be putting 50% equity. According to the model, the maximum equity could be up to 20% of the total cost. That is, the state government will seek at least 20% of the funds of the total project cost from the Centre while pushing the rest 20% from its own purse. The state government will raise the remaining 60% of the project cost through loans from the financial institutions.

Initial estimates peg the project cost around Rs 12,000 crore. This means the state would seek between Rs 2,000 and Rs 2,500 crore from the Centre for the Metro project.

Chief minister Akhilesh Yadav has already declared that work on the project would begin in December this year. But that will happen only when the Centre approves the DPR and gives financial assistance. Sources said until now the state government had only prepared a draft report, but now the latest report has been finalised and will be sent to the Centre for approval. Officials said the Centre may have two options: it could either give its nod or send back the report for some modifications. Sources indicated the state government in certain cases may also raise its equity, while still depending heavily on the loans from the financial institutions.

The state government would form a company on the lines of DMRC only after getting clearance for DPR. It could be named as Lucknow Metro Rail Corporation (LMRC). Owing to uncertainty over the financial model the state government has not formed a company till now.

The project has already undergone dramatic changes, ostensibly the proposed routes and the way they would be laid — elevated/underground. Sources said a consultant for a detail design of the project will be appointed. The state government is in touch with the two Central institutions – RITES and the DMRC – in this regard. Officials said DMRC was certain to come up with a design for the north-south corridor which is proposed to be taken up in the first phase.

The 22.8-Km north-south corridor, stretching between Amausi airport and Munshipulia, has been modified in the new DPR. The new DPR has reduced the underground stretch from 7.5 km to 3.5 km while restricting it to between Charbagh and Hazratganj. This will save around Rs 1,000 crore from the total project cost, sources said. The total cost of the N-S corridor is pegged at Rs 6,757 crore. The north-south corridor will have 22 stations – three underground and rest elevated. The corroder is expected to see passenger footfall of around 6.45 lakh daily by 2020.

During peak hours, technically termed as Peak House Peak Direction Traffic, the number of passengers is expected to be around 21,000 daily.