Punjab, Haryana, Chandigarh set to sign agreement on tricity Metro project
Punjab, Haryana and Chandigarh will sign a memorandum of understanding (MoU) related to the ambitious metro rail project at a meeting scheduled to be held in Delhi on Wednesday. The ministry of urban development will also take part in the meeting.Updated: Feb 04, 2014 21:07 IST
Punjab, Haryana and Chandigarh will sign a memorandum of understanding (MoU) related to the ambitious metro rail project at a meeting scheduled to be held in Delhi on Wednesday.
The ministry of urban development will also take part in the meeting. Recently, all the three stakeholders had agreed upon the terms and conditions of the MoU and the approval of the same was conveyed to the government of India.
Earlier, UT administration had altered the MoU circulated by the ministry. The changes were made with an aim to make all the three stakeholders reach consensus for execution of the project.
The administration had done away with the public-private partnership (PPP) mode and it was decided that all the three stakeholders would have 25% stake in the project, while the remaining 25% would be financed by the government.
Following directions of the ministry of urban development, the stakeholders have been working for the formation of special purpose vehicle (SPV) for execution of the project. The SPV can be registered under Companies Act as a public sector body, either wholly owned by the central government, or with equity participation from the state governments as well.
Nodal officers for the project are yet to be nominated, following which a core team would be formed. The total length of the metro project covering Chandigarh, Panchkula and SAS Nagar is 37.57km with an estimated cost of Rs 10,900 crore, which would be shared among Centre, Chandigarh administration and governments of Punjab and Haryana. Earlier, Haryana had expressed its intention of becoming a 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 kms, the first corridor of Metro rail will stretch from Chandigarh's Capitol Complex to SAS Nagar's Sector 70 - out of this, 4.97 km would fall in SAS Nagar. The project's second corridor will start from Mullanpur and end at the grain market in Panchkula's Sector 20 - 25.7 km in length. The first corridor is expected to be operational by 2018.
First Published: Feb 04, 2014 20:31 IST