Business Daily from THE HINDU group of publications
Thursday, Jun 22, 2006
Business Daily from THE HINDU group of publications Thursday, Jun 22, 2006 |
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Infrastructure Logistics - Railways States - Maharashtra Rs 500-cr viability gap funding for Mumbai Metro Our Bureau
Facts and figures The contract for this Ghatkopar-Versova corridor will be executed by a special purpose vehicle. The project's debt-equity ratio will be 70:30. REL's equity contribution at Rs 353 crore amounts to 69 per cent equity stake in the SPV.
Mumbai , June 21 The Central Government will provide viability gap funding of Rs 500 crore for the first corridor of the Mumbai metro rail project of Rs 2,356 crore, the first metro project in the country to be executed under public-private partnership, said Mr S. Jaipal Reddy, Union Minister for Urban Affairs. Viability gap funding means a one-time or deferred grant for infrastructure projects that may have long gestation periods and limited financial returns, so that their viability may be improved through government support. The contract for this Ghatkopar-Versova corridor will be executed by a special purpose vehicle, a joint venture between the Mumbai Metropolitan Region Development Authority (MMRDA) and a consortium led by the Anil Ambani group's Reliance Energy which has Connex of France as partner. The project's debt-equity ratio will be 70:30. REL's equity contribution at Rs 353 crore amounts to 69 per cent equity stake in the SPV; Connex will have 5 per cent stake and MMRDA 26 per cent. This build-own-operate-transfer project will be completed by 2009, commence operations in 2009-2010, and be run by the SPV for 35 years, said Mr T. Chandrashekhar, Additional Metropolitan Commissioner, at a function marking the laying of the foundation stone by the Prime Minister here today. The Prime Minister, Dr Manmohan Singh, said that the State must utilise funds from the Jawaharlal National Urban Renewal Mission for urban projects. The mission has committed Rs 50,000 crore for the next five years. The Maharashtra Government had sent urban proposals worth Rs 10,000 crore for Mumbai, said Mr Reddy. Dr Singh also suggested the constitution of a unified metropolitan transport authority for Mumbai that will ensure efficient integration of several modes of transport that the city would require. Mr Reddy also strongly advocated scrapping of the Urban Land Ceiling Act as well as the Rent Control Act; and reduction of stamp duties by the Government of Maharashtra.
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