Lucknow: The state government has decided to allot 150-acre land of Chak Ganjaria farms to Lucknow Metro Rail Corporation for commercial use and increase the Financial Internal Rate Return (FIIR) needed to run the Lucknow metro rail project in future.
A High Power Committee constituted for Lucknow metro rail project under Chief Secretary Jawed Usmani today directed the officials of Lucknow Metro cell to move a proposal in this regard for the Cabinet’s approval.
The government has set a target of 8 per cent FIIR from various resources to run the project, and to meet which, LMRC will develop commercial properties on 150-acre land of Chak Ganjaria farms. LMRC, registration of which is under process, is Special Purpose Vehicle that the government is constituting to oversee the execution of the project.
As for the funding, the state and the Centre will equally share 40 per cent of the project cost while the remaining will come from loan.
Because the Centre will not sanction its share until clearance on the Detailed Project Report (DPR) is obtained from concerned ministries, the state government has decided to begin the project using available resources by the end of December.
Apart from its own share, the state will take Rs 200 crore from Housing and Development Board, Rs 100 crore from Lucknow Development Authority, and Rs 50 crore from UP State Industrial Development Corporation.
In order to reduce the financial burden during the early stage of the project, Chief Secretary has directed the officials to take approval from the Cabinet on a proposal seeking relaxation in condition of payment of 20 per cent of the acquisition cost, which is a compulsion before initiating the acquisition process.
The 23-km-long north-south corridor will connect Amausi airport to Munshipulia through Alambagh, Charbagh, Vidhan Sabha Marg, Hazratganj, Lucknow University, IT crossing and Polytechnic crossing. Stretch of Amausi airport to Alambagh would be developed in first phase.