Noida metro asks Centre to take 50% stake, fund its projects

  • Vinod Rajput, Hindustan Times, Noida
  • Updated: Feb 03, 2016 14:48 IST
Centre will provide 20% of the project cost if it accepts the stake. (Burhaan Kinu/HT file photo)

The Noida Metro Rail Corporation (NMRC) has requested the ministry of urban development (MoUD) to accept a 50% stake in the company. If the ministry accepts the request, then the NMRC will become eligible for financial assistance from the Centre for projects in Noida, Greater Noida and Yamuna Expressway areas.

“We have proposed that the Centre should have a 50% stake in the NMRC. We have put forth this proposal because it will help us in getting the government’s financial assistance for ongoing and future metro projects,” said Rama Raman, chairman of Noida, Greater Noida and Yamuna Expressway authorities.

The NMRC was formed in November 2014 with a capital of Rs 1,000 crore to build and maintain metro projects in Uttar Pradesh, on the lines of the Delhi Metro Rail Corporation (DMRC).

As per the proposal, the MoUD will have 50% equity in the NMRC, but the Centre will be bound to provide only 20% funds for each metro project undertaken by the NMRC.

“After getting a stake, the MoUD will also be eligible to appoint officials to the NMRC. If the MoUD agrees to have equity in the NMRC, then it will boost the under-construction 30-km Noida-Greater Noida metro project and also fast track other proposed metro projects in Noida and Greater Noida,” Sandeep Chandra, general manager of the NMRC, said.

After the proposal goes through, the NMRC’s financial audit will be conducted by the Comptroller and Auditor General (CAG) of India, officials said.

The DMRC, which runs the Delhi Metro, is already a centre-state public sector company. Officials said the NMRC will also become a centre-state enterprise after the Centre gets a stake in the company.

Currently, the NMRC is owned only by Noida and Greater Noida authorities, on behalf of Uttar Pradesh.

Meanwhile, NMRC is also going to shift its office from Noida authority’s Sector 6 building to a new premises in Sector 29.

“The NMRC will shift to its new office — in the Ganga Shopping Complex in Sector 29 — by February 8. The NMRC will have a dedicated building in Sector 29 for administrative purposes. All meetings will be conducted here and decisions regarding metro projects taken,” an official of the NMRC said.

Noida chairman and managing director of the NMRC will inaugurate the office on February 8.

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