NAGPUR: The Delhi Metro Rail Corporation (DMRC) is expected to submit the revised metro rail detailed project report (DPR) to Nagpur Improvement Trust (NIT) next week. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) office had asked NIT to get a revised report in August. The reason for a revision in the project is because the earlier report was giving the financial internal rate of return (FIIR) of just 0.47% against minimum requirement of 8%.
A NIT official said that DMRC would suggest how the revenue from metro rail can be increased to meet the FIIR requirement. This would be done by drawing up a plan for transit oriented development (TOD) of the city.
An urban transport consultant told RailNews that JNNURM had found the project to be unviable because it felt that there would not be enough passengers for the metro rail. “To make a metro route viable, around 50,000 people must travel on it every day. However, the project figures for the Mihan-Kamptee Road route even twenty years down the line are nowhere near this figure,” he said.
Commenting on possible measures to achieve TOD, he said, “If we want more people to use the metro, then the development of the city should be concentrated along the metro corridor. More and more offices and shops must be located along the corridor so that people travel to their work places using the metro. This implies that you will have to give incentives to builders to create realty along the corridor. These incentives can be higher floor to space index (FSI), concession in stamp duty, increase in area where transfer of development rights (TDR) can be utilized so that the developer purchase TDR of a plot located not necessarily in the corridor area, etc.”
DMRC has already suggested how the special purpose vehicle (SPV) that will run the metro can use the land acquired for the project, commercially to generate additional revenue for the project. “The agency will suggest how this revenue can be maximized again by relaxing development rules for the SPV,” he said.
If DMRC’s recommendations are to be implemented, then the state government will have to make major changes in Maharashtra Regional and Town Planning (MRTP) Act and Maharashtra Municipal Corporations Act to allow NMC and NIT to change the development plan of the city without much hassle.