The Delhi Metro Rail Corporation (DMRC) submitted a Comprehensive Project Report (CPR) for the Chandigarh Metro Project to Mr. Shivraj Patel, the Punjab Governor and Chandigarh Administrator, on 16th August 2012. The report was presented by a group of DMRC officials at Raj Bhavan in Chandigarh.
Following a geo-technical survey conducted by the DMRC team to analyze the soil composition beneath Chandigarh, the detailed project report outlines the expenses, financial strategy, construction schedule, feasibility, and other crucial information necessary for the implementation and operation of the Metro Rail system in Chandigarh.
Moreover, the detailed project report for the Chandigarh Metro Project includes a projected timeline for project completion and a revenue model that will enable the city to recover the costs associated with the project.
Chandigarh Metro Project Cost
The DPR states that the total expenditure for the development of Chandigarh Metro is a staggering amount of Rs 10,900 crore.
Previously, the estimated cost provided by DMRC was Rs 8,388 crore. This figure has been revised due to several factors that were not initially accounted for in the project cost. Some of these factors encompass the expenses related to land acquisition, as well as various property and development taxes.
Chandigarh Metro Finance Plan
According to the financial models, the Government of India and Chandigarh UT will each contribute 25 percent towards the equity. The remaining 50 percent will be provided by the state governments of Punjab and Haryana. A memorandum of understanding (MOU) has already been signed between the central government and the governments of Chandigarh, Punjab, and Haryana, wherein each party agrees to bear 25 percent of the total development cost of the Chandigarh Metro.
Furthermore, the central government has considered the option of obtaining a loan from the Japanese government, which will account for approximately 56 percent of the total cost. This loan amount will be evenly distributed among the four stakeholders of the Chandigarh Metro, namely Punjab, Haryana, Chandigarh, and the Indian government.
Additionally, revenue generated from property development along the metro route will contribute to the financing, estimated to be around 6 percent.
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