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For Metro rail, states must bring private players: Govt

Marking a major shift in its focus on urban transit transport projects, the Union government has forced state governments to find a funding center for their Metro Rail project to involve private actors in the implementation and operation system.

The Union Cabinet on Wednesday approved the new Metro Rail policy, which states that “private participation or for the full supply of meter-meter or certain disaggregated components, is an essential requirement for all metro rail project proposals to financial assistance Central “.

Indian Express had reported in March, the proposed reduction
The role of the Center in financing railway projects through the promotion of privatization.

The three major PPP models detailed in the policy include the construction of new systems through the metro lane mode of design, construction, financing, operation and transfer, allowing private players to operate the service and to supply the material Rolling and involved in maintenance and upgrading from the infrastructure.

The new policy, however, has been described as “the most disastrous and retrograde urban transport policy” E Sreedharan, who successfully led the Delhi Metro Rail Corporation (DMRC) from the outset and is currently a senior adviser.

Speaking to The Indian Express (see interview on page 8), Sreedharan, who has always opposed the APP model on the subway, said: “The policy seems to have been framed by a person sitting in the non-NITI Aayog The experience of how the metro rail is built and operated.

In India, 12 of these projects have been implemented, only 20-25 km of new trains are operating each year. China climbs 300 km of subway lanes that open every year. We are already moving to the rhythm of snails. Now, with this policy, all the stops. ”

India, so far, has deviated from PPP in its metropolitan rail projects due to the requirements of low public transport fares. In addition, the capital-intensive nature of these projects does not allow private companies to obtain a return on their investment, unless they rose sharply.

Most of the metropolitan railway projects So far have been implemented in the model of joint equity, costs are shared equally between state and central governments.

The first JV model was successfully completed in the case of DMRC, followed by Mumbai Line-3, Nagpur, Bangalore, Chennai, Ahmedabad, Lucknow and Kochi.

PPP Feasibility Gap funded from the Union government, has been treated as Mumbai Metro Line 1 and Metro-Hyderabad, which experienced a significant increase in costs and delays.

On the Delhi Metro line, the private concessionaire abandoned the project halfway to force the DMRC to intervene and resume operations.

D S Mishra, Secretary of the Department of Housing and Urban Affairs, said the PPP would bring the efficiency and experience of the private sector in the rail lane project. “This is part of the general plans developed by the Ministry of Finance for PPP not only on land, but also in the road, water or sanitation sector.”

The new policy also requires that state governments are exploring the commercial exploitation of land along the rail project, as well as encouraging development-oriented transit, which will densify areas along the metro.