NAGPUR: Construction work on Nagpur metro rail will take at least one year as a large number of formalities have to be completed. The state and union cabinets will have to clear the project once again at revised cost.
Meanwhile, the state government has cleared the alignment of the metro rail and a notification will be published within two to three days. Citizens will be given sixty days to register their suggestions and objections.
Pravin Darade, outgoing chairman of Nagpur Improvement Trust (NIT), said that at first the special purpose vehicle (SPV) will be formed, which will be headed by urban development secretary, government of India (GoI). "The SPV will then appoint a consultant to estimate the cost at revised rates, prepare a plan to expedite the process and prepare a global tender," he said.
Commenting on the viability of the project, he said that even if 30% of increased floor to space index (FSI) was purchased in 20 years then the metro railway will get Rs20,000 crore. "The increased stamp duty will fetch us Rs10,000 crore. So there is no problem with viability of the project," Darade said.
On construction of elevated track in stretches having flyovers, he said, "The tracks will run parallel to the flyover. We will need to acquire some land. We will accommodate property owners at our cost until the structure is ready and then rebuild their properties."
The SPV will have to raise 50% of the funds by taking soft loans from international banks like JICA, ADB, which give a long moratorium on repayment. "Some 10 to 15% will have to be raised from the market. Some banks like HDFC, Axis Bank, SBI and PNB have already approached NIT. The willing ones will form a consortium to lend us. However, we will take loan from them at the last stage when money from other sources dries up. The civil work component is 40% while rolling stock is 60%. So we will take the high interest loan when we require the trains," he elaborated.
New NIT chairman Harshdeep Kamble said that metro railway would be one of his top priorities. Other focus areas would be Nagpur metro region and increasing the revenue of NIT.
Source..times of india