The approval came during a Cabinet meeting chaired by Chief Minister Arvind Kejriwal. Deputy CM Manish Sisodia hailed the decision, saying it will boost public transport in the national capital.
After inordinately delaying for few years, the AAP government finally approved the much-awaited Phase-IV of the Delhi Metro on Wednesday, declaring that it will share the construction cost.
The approval came during a Cabinet meeting chaired by Chief Minister Arvind Kejriwal. Deputy CM Manish Sisodia hailed the decision, saying it will boost public transport in the national capital.
While briefing the media about the decision, Sisodia said, "The government will give its share of Rs 9,707 crore towards the construction work under the project, which is estimated to cost around Rs 45,000 crore." He also said that the Cabinet has also cleared a proposal for the purchase of 334 rolling stocks. Touted to be the most expensive project of the Delhi Metro Rail Corporation (DMRC), it is likely to be completed by December 2024.
As many as six new corridors will come up under the Phase IV project, running into more than 103 kilometres. These routes include a 7.96 km-long Lajpat Nagar-Saket G-block section, a 12.54-km long Mukundpur-Maujpur section, a 12.58 km-long Inderlok-Indraprastha section, a 20.20 km-long Tughlakabad-Aerocity section, a 21.73 km-long Rithala-Narela section and a 28.92 km-long Janakpuri (west)-RK Ashram section.
The Delhi government had asked the DMRC to seek fresh approval from its board after the total cost of the project declined sharply from approximately Rs 52,625 crore to around Rs 46,800 crore before sending it to the Cabinet for a final nod. This meant that the amount to be shared by the Japan International Cooperation Agency (JICA) came down to 43.01 per cent of the total cost incurred, hence increasing the amount of financial assistance on the state and central governments.
The estimated expenses for Phase IV were changed twice before the Cabinet accorded a final nod. It was first reduced from Rs 55,208 crore to Rs 45,603 crore. It was again revised to around Rs 46,800 crore. The DMRC said that the total cost of the project was planned afresh, keeping in mind current prices and a new tax regime. Another reason of the cost getting reduced was reviewing the project's cost escalation. Earlier, the project cost of Rs 55,208 crore was registering an annual escalation factor of 7.5 per cent. However, upon review it was found that the escalation could be further brought down to 5 per cent per year.
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