E-Paper
Central govt. to participate in Swargate-Katraj metro project through equity share, not grant
Initially on May 12, 2022, it was decided to approve an elevated metro line costing ₹3668.04 crore. The project received cabinet approval on April 20, 2022
The state government has approved the revised financial plan for the 5.5 km fully-underground metro line from Swargate to Katraj that will cost ₹2,954 crore. The central government has decided to participate in the project through an equity shares model rather than providing a grant. With this, the Swargate to Katraj metro project has moved a step closer to reality however the Pune Metro is waiting for the union cabinet meeting to take place.
The state government has approved the Swargate to Katraj metro project that will cost ₹2954.75 crore and span 5.464 km across three stations. The project, managed by the Maharashtra Metro Rail Corporation Ltd. (Maha-Metro), will be fully underground.
Initially on May 12, 2022, it was decided to approve an elevated metro line costing ₹3668.04 crore. The project received cabinet approval on April 20, 2022. On January 18, 2024, the Public Investment Board (PIB) recommended a grant model for the project. But the central government on August 5, 2024, decided to participate through equity shares.
The financial participation plan includes a ₹300.63 crore subsidy from the central government and ₹97.83 crore share from the state government. Both governments will provide interest-free loans: ₹115.52 crore each for 50% of the central government tax (CGST), and the state government will provide ₹206.58 crore for state government taxes and duties (SGST). Additionally, the Pune Municipal Corporation (PMC) will grant ₹181.21 crore for land acquisition, rehabilitation, and interest during construction.
The revised financial participation plan was submitted and approved by the state government. The central government requested an updated plan based on the equity shares model. This decision, backed by the planning and finance departments on August 7, 2024, finalises the approval process and allows implementation of the Swargate to Katraj metro project. The state’s urban development department’s joint secretary Vijay Chaudhary has approved the project on the equity shares model.
Shravan Hardikar, managing director of the Maha-Metro, said, “Two years ago, we planned and sent a grant model for financing the Swargate to Katraj underground extension project. However, the central government has now decided to use an equity model. We sent the new equity finance proposal to the state government, which approved it. The state will now send it to the central government. In the grant model, ownership could change but with the equity model, the special purpose vehicle (SPV) which is Maha-Metro, will keep ownership.”
“The Project Implementation Board (PIB) might call a meeting because the share percentage has changed from 10% to 20%. It is not yet clear if the project will go back to the PIB or directly to the finance department,” Hardikar said.
