State, RInfra to ink agreement tomorrow

The state government and Reliance Infrastructure Limited will on Thursday ink a concession agreement to build the Charkop-Bandra-Mankhurd Metro line.

The state government and Reliance Infrastructure Limited will on Thursday ink a concession agreement to build the Charkop-Bandra-Mankhurd Metro line.

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The agreement is an understanding between the government and a firm, specifying rules under which the firm will run the project.

It will be signed at Sahyadri Guest House in the presence of Chief Minster Ashok Chavan.

Besides the cost, the agreement will include terms of ticket pricing which will range from Rs 7 for a distance of up to 3 km to Rs 22 for a distance of over 30 km.

The 32-km Charkop-Mankhurd Metro line via Bandra will be constructed on a build-operate-transfer basis in August 2009, and its cost will be recovered in 35 years.

After the signing, Reliance will get nine months to gather funds for the project and begin work. Its completion is expected by 2016.

Reliance claims the project will cost Rs 11,000 crore, of which the government will give Rs 2,298 crore as grants.

The contractor has to deposit Rs 160 crore as performance security after signing the agreement.

As per agreement, the state has to provide a clear right of way for at least half the stretch before work begins. The first Metro line has been impeded due to right of way.