Just a few days after the Centre refused funds for the third Metro route in Mumbai, Delhi Metro’s managing director E Sreedharan, slammed the public-private partnership (PPP) model, under which the Mumbai Metropolitan Region Development Authority (MMRDA) plans to develop the city’s Metro corridors.
Calling it ineffective, Sreedharan asked the planners to look at the Delhi Metro’s funding models. The three-line Metro system in Delhi was built partly with the Government of India, Delhi government funds along with debt and loans from various agencies.
Sreedharan said the PPP model, adopted by the MMRDA works well only in projects such as airports, ports and highways and not for Metro rail, as the latter offers low returns while being highly capital intensive. “Metro projects are very expensive and are social. They are not expected to make profits. Private players will come in only when there is profit,” added Sreedharan. “Ideally, it should be 50:50 participation from the Central and state governments.”
MMRDA spokesperson Dilip Kawathkar, however, said, “Funding the various Metro corridors will require around Rs 42,000 crore, an amount which will be very difficult to obtain funding for, from both the State and the Centre.