The high-powered committee (HPC) on Lucknow Metro Rail headed by chief secretary Jawed Usmani on Wednesday gave its nod to a Special Purpose Vehicle (SPV) for implementation of the project.
To be known as the Lucknow Metro Rail Corporation (LMRC), the company with an authorised share capital of Rs. 2000 crore would have 14 directors and would be headed by the secretary, union ministry of urban development/UP chief secretary depending on the centre’s contribution to the project.
“The HPC has okayed the proposal. Only chief minister Akhilesh Yadav’s approval is now awaited,” said a senior housing department official.
Though the officials said they have Rs. 100 crore funding commitment from the state gover nment, the Lucknow Development Authority (LDA), the UP Housing and Development Board and the UPSIDC would pitch in to provide the necessary financial support for the SPV. While housing board would provide Rs. 200 crore and LDA Rs. 100 crore, the UPSIDC’s contribution to the project is yet to be decided.
To enhance its income generation (financial rate of return on investment) as per the new guidelines formulated by the Centre, the plan panel has decided to increase the property development component in the project.
Of the 526-acre Chak Ganjaria farmland on Sultanpur Road, the proceeds from the sale of 150 acre would now go solely in funding the Lucknow Metro rail.
“Being basically a high-end infrastructure service, Metro rail projects have never been a churner. But we had to increase our financial internal rate of return (FIRR) ratio to adhere to the latest ministry of urban development (MOUD) stipulations on metro rail projects,” said the official.
Another new criteria put down by MOUD states that metro rail service should seamlessly integrate with all modes of mass public transport in order to provide first and last mile connectivity.
“We have inked a memorandum of understanding with interim consultant DMRC to undertake this study on other modes of public transport like the feeder bus service that can be made available in influence zones and submit a report in three months,” said the official.
The DMRC would also provide assistance in carrying out detailed surveys for technical works, acquiring no objection certificates from various departments, appointment of consultants for preparing detailed designs and plan for civil structure and preparing tender document and selection of agency among others.
The interim consultant has been given nine months’ time to submit a techno feasibility study of the ring rail, East-West Corridor and Gomti Nagar link under the second phase of the expansion of service.
“The alignment of Gomti Nagar link is specially being reconsidered to ensure that it covers the new high court campus and some other institutions that are coming up in Vibhuti Khand of Gomti Nagar,” the official said.