Nagpur Improvement Trust to bear 5% share in Nagpur Metro rail project

Nagpur (NGP):  Cash-strapped Nagpur Municipal Corporation (NMC) can heave a sigh of relief as the Nagpur Improvement Trust (NIT) has assured to bear its share in the metro rail project. In another development, the state government has finalized the total share of NMC and NIT for the project at 10% while withdrawing the proposal to increase it to 20%.

NIT chairman Pravin Darade made the two announcements on Saturday during the special presentation organized for corporators regarding detailed project report of city’s comprehensive mobility plan. Corporator Praful Gudadhe asked NIT, which is the nodal agency for metro rail project, to meet the metro rail project’s financial feasibility in case NMC is not able to bear its 5% share. Darade said NIT was ready to contribute 5% of its share and also NMC’s share.

Darade’s statement surprised the office-bearers and corporators. Only a few months ago, NIT had requested for NMC’s approval to share 5% of the project cost. NMC had given its consent to contribute Rs450 crore despite facing severe financial crisis.  Darade said NIT was ready to contribute 10% if NMC approves to give it total revenue earned from the project. “Revenue will come from 1% hike in stamp duty after execution of the project. The premium will be huge after granting 8 FSI for constructions within 500 metres on either side of the metro route. NMC should pass such resolution in its general body,” he said.

Replying to a query related to government’s letter to increase NMC and NIT’s share to 10% each, Darade said the government has finalized 5% each for both the agencies.

Giving some details about city’s comprehensive mobility plan, Darade said the plan envisions improving public transport and easing traffic congestion over the next 20 years. “It is divided into short-term, medium-term and long-term plans. The estimated cost is around Rs13,500 crore and the central government will be given proposal to provide funds under JNNURM. NMC and NIT can execute the plan in their respective areas. NIT is also ready to execute the plan completely in case NMC expresses its inability,” he said.

Gudadhe said comprehensive mobility plan is must for the city as it has 12 lakh vehicles now and around 1 lakh new vehicles are added every year. “Special pedestrian path and improvement of squares are proposed in the short-term plan. Cycle bay, parking plazas etc are proposed in medium term plan while the long-term plan entails creating mono rail and bus rapid transit system,” he said.

NMC general body is set to give approval to the plan in the meeting organized on February 18. NIT had submitted the plan to the central government which asked for approval from NMC. So, NIT gave presentation on the plan on Saturday seeking NMC’s consent.

Metro Rail Funding (Figures in Rs./Crores):

  • Total cost: 8680
  • NMC: 434 (5%)
  • NIT: 434 (5%)
  • State Govt: 1,736 (20%)
  • Centre: 1,736 (20%)
  • Loan: 4,340 (50%)

* NIT’s share will be Rs.868 crore in case NMC decides not to be a part of the project