Pune Metro project: PMC, state’s share of cost increases

Central government reduced its share of financial contribution to Pune’s Metro, from 20 per cent to 10 per cent

PUNE With the central government having reduced its share of financial contribution to Pune’s metro, from 20 per cent to 10 per cent, Maha-Metro has now requested the Pune Municipal Corporation (PMC) and the state government, to cover the outstanding amount.

Metro work at Swargate in Pune, on June 21, 2021. (PRATHAM GOKHALE/HT)

The shortfall in finance is specific to the funds needed for the extension of the Metro route between Swargate and Katraj.

For the first phase of the Metro which covers two lines, Vanaz to Ramwadi and PCMC to Swargate, the funding pattern was Central and state government’s to contribute 20 per cent each, PMC would give 10 per cent, and the balance 50 per cent would be taken as a loan from a bank.

Now, the proposal submitted to the PMC states that both PMC and the state government need to bear 15 per cent of the cost, each, with the Central government bearing 10 per cent and the balance 60 per cent will be a loan.

Maha-Metro’s public relation’s officer Hemant Sonawane said that the proposal was submitted to the PMC on Monday.

Another Maha-Metro official speaking on condition of anonymity, said, “Because this is an extension of phase one of the project, which was already cleared, the Central government has approved 10 per cent. It is a a common formula used by Centre. If there is an extension to what has already been decided it contributes only 10 percent. If the PMC had submitted this extension as part of the second phase, clubbing all the extension routes together, there were chances the Centre would have stuck to its 20 per cent contribution. But, that kind of proposal needs a lot of permissions and it is a time consuming process.”

Congress party leader Gopal Tiwari criticised the Central government’s decision to approve only 10 per cent for the Pune metro.

Tiwari said, “I am going to raise this issue with the national leadership. The central government is running from its responsibility and forcing the municipal corporation to take on an additional burden as well as borrow extra.”