Chandigarh: The UT administration of Chandigarh decided not to implement the Metro Rail Project under the Public Private Partnership (PPP) mode as it feels that this model is not fit for this project.
The administration plans to set up a 37.57 kilometre metro rail system linking Chandigarh, Panchkula and SAS Nagar at a cost of Rs.10,900-crore.
According to the administration, PPP in metro rail project leads to inordinate delay and time, cost over-runs.
Therefore, the administration revised the project’s memorandum of understanding (MoU) circulated by the ministry of urban development (MoUD).
According to the revised MoU, the cost of the project would be borne equally by Haryana, Punjab, Chandigarh and the centre.
The proposed changes would bring about consensus among all the three stakeholders – Chandigarh, Punjab and Haryana, reports indicate.
All the stakeholders are taking steps to set up a special purpose vehicle (SPV) for executing the project.
The proposed SPV would be registered as a Public Sector Undertaking under Ministry of Urban Development (MUD) Under the Companies Act, 1956.