UP Officials explore new avenues to raise funds | lucknow | Hindustan Times
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UP Officials explore new avenues to raise funds

Even as the state government dispatched a formal request to the Centre to issue the necessary notification for Lucknow Metro Rail project, officials here have intensified efforts to explore new avenues for raising additional funds for the project.

lucknow Updated: Jul 10, 2013 11:58 IST
HT Correspondent

Even as the state government dispatched a formal request to the Centre to issue the necessary notification for Lucknow Metro Rail project, officials here have intensified efforts to explore new avenues for raising additional funds for the project.

In his letter to director of Mass Rapid Transit System of the union urban development ministry, principal secretary for housing Sadakant has attached a copy of the July 5 state government order sanctioning work on the 22.99 kilometer-long North-South corridor as first phase of the project.

Though a major chunk of the funds would have to be procured as loan from foreign institutional lenders once the Center gives its nod, officials at the helm of the project are mulling local steps to garner additional resources.

In this regard, chairman of the metro cell, Rajiv Aggarwal held a meeting with senior officials of finance, stamp and registration department here on Tuesday to discuss ways and means to bankroll this modern mode of public transport.

“Measures like increasing the floor area ratio (FAR) along the metro corridor, enhancing stamp duty on property abutting this stretch etc were discussed. But we are still studying the legal aspects and impact these will have. In any case, a final decision would be taken by the high power committee (HPC) headed by the chief secretary,” said Aggarwal when contacted by Hindustan Times.

A mere 0.5% increase in purchasable FAR on all plots located within 500 metres on either side of the proposed metro line would give builders and developers the chance to build extra dwelling units.

Proceeds from the sale of this FAR could fetch several hundred crore to strengthen the metro system, says a planning expert.

In fact, NOIDA had got a similar proposal passed by its board to fund its metro rail link.

Aggarwal said documentation and paper work related to the project was almost complete.

“We have got the report from the team that had gone to study how the metro rail project is shaping up in Chennai. They would be going to Bangalore next on July 15. We are going to adopt the best provisions and practices adopted by others,” he said, adding that DMRC was expected to deliver the modified detailed project report by next week.