The cost of the ambitious Metro rail project will be borne equally by Haryana, Punjab, Chandigarh and the Centre.
Earlier, the project was to be carried out under the public-private partnership mode. However, this past week, the UT administration altered the project's memorandum of understanding (MoU) that was circulated by the ministry of urban development (MoUD).
The changes have been made with an aim to make all the three stakeholders - Chandigarh, Punjab and Haryana -- reach consensus for execution of the project.
A senior official of UT administration said all major projects carried out under the PPP mode were marred by delays, so it was a collective decision to dump the PPP mode.
Following the directions of MoUD, the stakeholders are working for the formation of a special purpose vehicle (SPV) for executing the project. An SPV can be registered as a public sector undertaking (PSU) under the Companies Act. A PSU can either be wholly owned by the Centre or with equity participation of state governments.
Nodal officers for the project are yet to be nominated.
Once completed, the Rs 10,900-crore Metro project will cover 37.57 kilometres in Chandigarh, Panchkula and SAS Nagar. Earlier, Haryana had expressed its intention to partner with Chandigarh in the project. The Punjab cabinet has already given approval to link SAS Nagar with Chandigarh.
Covering a distance of 12.49 kilometres, the first corridor of Metro rail will stretch from Chandigarh's Capitol Complex to SAS Nagar's Sector 70. Of this, 4.97 km will fall in SAS Nagar. The project's second corridor will start from Mullanpur and end at the grain market in Panchkula's Sector 20; its length will be 25.7 km. The first corridor is expected to be operational by 2018. Once operational, the first corridor is expected to provide benefits of more than Rs 11,000 crore by 2026.