The government on Monday earmarked a substantial amount to the Urban Development Ministry for spending on extension of Metro networks in Delhi, Bangalore and Chennai in the Budget 2011-12.
While the equity to Delhi Metro is Rs 452 crore (Rs 4.52 billion), equity to Bangalore Metro is Rs 500 crore (Rs 5 billion) and Chennai Metro's equity is Rs 600 crore (Rs 6 billion) in the 2011-12 fiscal, Finance Minister Pranab Mukherjee said.
Urban Development Ministry has got total Rs 6855.23 crore (Rs 68.55 billion), an increase of Rs 308 crore (Rs 3.08 billion) from the last fiscal 2010-11.
The ministry has been allocated Rs 6068.76 crore (Rs 60.68 billion) as Plan allocation and Rs 786.47 crore (Rs 7.86 billion) as non-Plan allocation in the current fiscal.
The allocation for the urban infrastructure development project has witnessed a hike from Rs 47 crore (Rs 470 million) in the last year to Rs 90 crore (Rs 900 million) this year.
Budget allocation for the National Capital Region is being kept at Rs 53.01 crore (Rs 530 million) in the fiscal 2011-12 almost the same amount it got last fiscal.
Further, the construction of Delhi Metro's Phase-III, which envisages adding another 104 kms to the network in Delhi, is proposed to be taken up in 2011-12, the government has allotted Rs 1,351 crore (Rs 13.51 billion) as budgetary support for it.
With the Phase-II, that brought the Metro network in Delhi to about 200 kms, almost nearing its completion, the Government announced plans for the Phase-III for which the Delhi Metro has already prepared detailed project reports.
"In 2011-12, Delhi Metro Phase-III and Mumbai Metro Line III are proposed to be taken up," Finance Minister Pranab Mukherjee said in his budget speech in Lok Sabha.
While the Centre will infuse Rs 452.2 crore as equity to the Delhi Metro Rail Corporation, which it jointly owns with the Delhi Government, it will provide Rs 101.28 crore as grants.
Another Rs 650 crore is being proprosed as pass through assistance for the new age transport system, which has changed the way Delhiites travel.
On February 14, the Delhi Metro had made a detailed presentation on Phase-III project to the Planning Commission.
While the Planning Commission wants the debt equity ratio to be increased to 50:50, sources said the Delhi Metro has expressed its reservations against such high equity investments by the Delhi and central governments.
The sources said the Delhi Metro has proposed a debt equity ratio of 40:60 under which the two governments will contribute 20 per cent each and the rest of the amount is to be raised by loans from agencies like Japan International Cooperation Agency (JICA).
The Delhi Metro has proposed six corridors under the Phase-III plan to the Planning Commission. The DPR was prepared by the DMRC last month after which it was decided to extend the Phase-III network to 105 kms.
Lending agency JICA has also given positive indications to extend financial assistance to the project. JICA has funded the Phase-I and Phase-II of the Delhi Metro and is also funding other Metro projects in the country.
