Maha Metro hints at not sharing rent revenue with Pune civic body

As per the detailed project report, the total project cost of the metro is ₹11,420 crore. It is borrowing a ₹5,831 crore loan and the PMC is giving ₹951 crore for the project

The Maharashtra Metro Rail Corporation (Maha Metro) has indirectly denied to share income from property development with the Pune Municipal Corporation (PMC).

he state government would take decisions about the funds and share as Maha Metro would require the revenue from non-ticket sources, said officials. (Pratham Gokhale/HT Photo)

Recently, the PMC’s estate department wrote a letter to the Maha Metro and said, “PMC handed over a lot of prominent land to the Maha Metro, which is being developed and rented out. The rent income should be shared with PMC or instead of asking for a PMC share in metro development, Maha Metro should minimise it.”

The Maha Metro replied to the PMC and said, “Maha Metro is a joint project of the Central, state and local body. All over the world, metro projects do not only sustain on ticket revenue and it needs to add non-ticket revenue to make the transport project sustainable.”

Maha Metro said, “As per the detailed project report, the total project cost of the metro is ₹11,420 crore. It is borrowing a ₹5,831 crore loan and the PMC is giving ₹951 crore for the project.”

Metro said, “The state government would take decisions about the funds and share as Maha Metro would require the revenue from non-ticket sources. Renting out the property is a way to generate non-ticket resource until the metro project is in progress. Instead of discussing rent sharing and other elements, both the organisations need to work to complete the metro project earlier.”

The administration on Tuesday submitted the metro’s letter to the standing committee for information.