Lucknow Metro Rail Corporation holds its maiden first Board Meeting, CS appointed Chairman

Lucknow (LKO): The special purpose vehicle, Lucknow Metro Rail Corporation (LMRC), held its first board meeting on Thursday and announced that the Chief Secretary will be its Chairman. The decision comes in line with the rule which says that if the contribution of GOI is less than 50% or it doesn’t appoint a Chairman to the Corporation, the state could appoint its Chief Secretary as Corporation’s Chairman.

“Till GOI doesn’t approve funds for the company, Chief Secretary will be the Chairman of the Board as per our Memorandum of Association,” said the Metrol Cell sources. The meeting took formal decisions on preliminary formalities, funding, constitution of the board and staffing in the company. The minimum strength of directors would be three while maximum would be 14.

As its first Directors, LMRC has currently appointed five functional directors – Principal Secretary, Housing and Urban Planning Department; Secretary, Housing and Urban Planning Department; Secretary, Finance Department, and Divisional Commissioner of Lucknow, including the Chief Secretary.

The registration certificate of LMRC was also presented before the Board for its perusal. As per the GO, the company has started with a minimum paid up capital amount of Rs.5 lakh at the moment. It would have 5000 shares of Rs.100 value each. At present, the corporation has 10 stakeholders. This would increase over time depending on situation and need. The authorized share capital of the company is Rs.2,000 crore.

The Board was informed that the formal statement of registered company ‘LMRC’ will soon be submitted to the ROC, only after which they would get a certificate to begin the business. Besides, Lucknow Development Authority’s NOC regarding usage of LDA’s premises in Janpath area for LMRC office was also shown to the board. The work of metro cell will now be taken up by LMRC while the cell would dissolve over time.

Since the company got registered in November this year, the current financial year would be recognised from Nov 25, 2013 to March 31, 2014. LMRC’s bank account would be opened in State Bank of India. Metro cell Chairman and Housing Secretary, Rajeev Agarwal, has been recognised as the signatory for all important documents on behalf of the company.

Appointment of a Managing Director of the Company is next big task for the LMRC. Officials said, they would soon send proposal for appointment of the LMRC’s MD to the government as his presence is very crucial for handling day to day proceedings. The MD would most likely be a bureaucrat, hinted the metro cell. Also, a formal letter would soon be sent to the CAG for appointment of statutory auditor of the company.

The board was apprised that the preliminary expenses while forming the company were borne by LDA to the tune of Rs 2,00,63,570 which included registration expenses, stamp cost, professional charges etc. It was decided that the investment would be in the form of grant from LDA.

Also, budget for the FY 2013-14 was discussed before the board which showed Rs 33 crore 5 lakh expenditure as against income of Rs 93 crore and 1 lakh. The income part would mainly be comprised of Rs 10 crore from UPSIDC, Rs 20 crore from LDA, Rs 40 crore from UP Housing Board, Rs 1 crore funds from GOI and about Rs 2 crore already spent on SPV’s formation.

The expenditure part comprises Rs.25 crore on civic construction, Rs.7 crore on company’s formation, consultancy and techno-feasibility study fee of DMRC, besides the salary component. Also, it has been decided that the LMRC would bear salaries of officials and staff employed in the company from now onwards. At present, the LMRC comprises nine members.

Metro cell announced that the software development for web portal and office automation of LMRC has already been given to Uttar Pradesh Electronic Corporation Limited. The cell has started partially using the company’s website while it is still under construction for the outsiders. UPECL has to be given Rs 54 lakh and 38 thousand for the software development work. The board has decided to store company’s data in the state data centre.

Metro, Monorails for other cities proposed

The government is planning to consider Metro and Mono Rail Projects for other eligible cities like Kanpur, Varanasi, Agra and others which attract millions of tourists who face major traffic constraints. It is suggested that MRTS can provide solution to the frequent traffic congestion in cities.

Advisor to the government of Uttar Pradesh, Madhukar Jaitley, said that the instructions to agencies concerned had been issued to consider viability and feasibility study and timely preparation of DPR of each study which qualifies the proposal of setting up Metro or Monorail depending on GOI guidelines on population.

Officials nominated by the state government as first subscribers to the shares of LMRC as per GO dated Nov 6 are as under:

Name of the Subscriber:  Principal Secretary, Housing and Urban Planning Department, UP
Number of Equity Shares subscribed: 4910

Name of the Subscriber: Principal Secretary, Urban Development Department, UP
Number of Equity Shares subscribed: 10

Name of the Subscriber: Principal Secretary, PWD, UP
Number of Equity Shares subscribed: 10

Name of the Subscriber: Principal Secretary, Transport Department, UP
Number of Equity Shares subscribed: 10

Name of the Subscriber: Secretary, Housing and Urban Planning, UP
Number of Equity Shares subscribed: 10

Name of the Subscriber: Secretary, Finance Department, UP
Number of Equity Shares subscribed: 10

Name of the Subscriber: Commissioner, Lucknow Division
Number of Equity Shares subscribed: 10

Name of the Subscriber: District Magistrate, Lucknow
Number of Equity Shares subscribed: 10

Name of the Subscriber: Vice Chairman, Lucknow Development Authority
Number of Equity Shares subscribed: 10

Name of the Subscriber: Municipal Commissioner, Lucknow Nagar Nigam
Number of Equity Shares subscribed: 10

Major Announcements:

  • The website and software development of LMRC will be completed over next 2 months
  • Board will frequently meet in initial years, next meeting expected within this month
  • Rule says that board should ideally meet every three months
  • Metro Cell to dissolve, High Power Committee will remain to make policy level decisions
  • LMRC to take operational decisions
  • The decision to give metro project on turn-key basis is likely to come out in December
  • Two agencies participating in the fray for turn-key project- DMRC and RVNL, DMRC already submitted terms of engagement
  • LMRC in talks with UPSRTC to build Alambagh metro station near the bus stand, about 6 acres land
  • LMRC proposes not to disturb the existing infrastructure but build metro station either in the basement or nearby
  • Cell cautions people to carefully read the proposed metro route and avoid taking up any construction or buying any project along the route