Chandigarh Metro Rail – consent over SPV is long awaited

The UT Administration is waiting for consent from governments of Punjab and Haryana over the equity structure for the Special Purpose Vehicle (SPV) for the Metro Rail proposed for the Tricity. While talks have been going on between the stakeholders, a final decision is yet to be reached. It is likely that the Ministry of Urban Development (MUD) would be part of the equity structure.

At a meeting held earlier this month, a decision was taken to form the SPV. The name was finalised as Chandigarh Tricity Multi-Modal Transport Corporation. However, a decision on the equity structure was not taken. It was decided that officials of Punjab and Haryana would discuss the issue amongst themselves and reach a conclusion. Thereafter, it would be conveyed to the administration.

Several models for equity structure have been discussed. The Punjab government had earlier agreed to give its share of funds for the project. The approval for the same had been given by the Cabinet. However, a decision on equity participation in the SPV had not been taken. It’s only when the states give their approval that the SPV can be constituted.

UT Adviser K K Sharma says that talks are being held with the officials of Punjab and Haryana and a decision is expected soon.

The Ministry of Urban Development is likely to represent Chandigarh in the SPV. Once the equity structure is decided, experts from different fields would be made a part of it. These officials would solely be tasked with dealing with the issues pertaining to the Metro. An official says that it is likely during discussions by experts that the detailed project report prepared by the Delhi Metro Rail Corporation may witness some changes. The report had been submitted a few months back.

The Metro Rail would run in two corridors in the Tricity. The North-South corridor would be from Capitol Complex in Sector 1 to Gurdwara Shaheeda in Mohali. The East-West corridor would extend from Transport Terminus in Mullanpur to Grain Market in Sector 21, Panchkula.

The UT Administration has completed the physical demarcation of the Metro routes. Milestones have been installed along the routes and near the locations where Metro stations would be constructed. The exercise has, however, not been undertaken in Panchkula and Mohali. With two states and a Union Territory being stakeholders in the project, consent of all three is required which at times causes delay.

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