Union minister for urban development, housing and urban poverty alleviation M Venkaiah Naidu on Monday said the Centre will help the Madhya Pradesh government expedite the two metro projects scheduled for Bhopal and Indore.
The cost of metro project in Bhopal is estimated to be Rs 7,000 crore, and as per the previous plan, 20% of the project cost was to be provided by the Centre and the remaining Rs 5600 crore was to be given as a loan by Japan International Cooperation Agency (JICA). As per the previous schedule, JICA was to send its first instalment by November for the project in Bhopal. Similarly, project cost of Indore project is `7,522.63 crore, and it was planned that JICA would extend a financial loan of `6018.10 crore.
However, the Japanese agency has now backed out from the project. “Since JICA is not responding, the Centre will now help Madhya Pradesh in getting loans from other sources to complete the two projects,” Naidu, in Bhopal on Monday to take part at a workshop of urban development, said.
The union minister told HT that international lending institutes like the Asian Development Bank (ADB) and the European Investment Bank (EIB) will now extend a loan of 60% of the total project cost. The Centre will stand a guarantor for the long-term loan and will provide about 20% equity, he said.
“As JICA has withdrew from the position of being the prime investor, the state government has now intervened with 20% equity in the project,” urban administration and development commissioner Vivek Aggarwal told HT, confirming that around Rs 3,000 crore is presently available in the metro fund. “The work will also kick start soon, as the situation is clear,” he said.
5 Smart City projects in MP thanks to CM
Naidu said that because of chief minister Shivraj Singh Chouhan’s interest and involvement, five cities from Mahdya Pradesh have been chosen for the Smart City project. He also revealed that Sagar and Satna are the next probable choice for smart city projects.
Addressing the workshop, Chouhan said that MP has sufficient funds for urban development. “Around Rs 83,000 crore will be spent on urban development in the next three years in MP,” he said, stating that Rs 20,500 crore has been the fund tie-up for smart cities in MP till now.
State urban development minister Maya Singh said that the Centre has provided additional aid to Madhya Pradesh. “As an incentive measure for meeting urban development deadlines, MP has received an additional grant of `33.15 crores for housing for all schemes,” she said, adding that more than 77,000 houses will be built in the state.
Naidu also said that corruption has come down in the country since Narendra Modi became the prime minister of the country. He quoted former PM Rajiv Gandhi, who had said that if Rs 100 is provided from the government, only Rs 15 goes in the pocket of the poor, but said, “In Modi’s government, corruption has reduced as we have ensured that the money reaches the (bank) accounts of poor people directly.”