Noida Metro Rail extension may be delayed over funds as UP Govt looks at PPP Model

NOIDA: The Noida Metro extension towards Greater Noida West may take longer than you think.

After the detailed project report was submitted to the state government for the 14km extension line, there have been a series of queries regarding the project’s funding.

In the latest, the state government has asked Noida Metro Rail Corporation (NMRC) to explore if the extension can be built using a private-public partnership (PPP) model. According to the DPR, the project will cost about Rs 2,000 crore, of which Rs 1,100 crore would be required for the first phase.

Officials said the UP government’s finance department had initially questioned how the Greater Noida Authority (GNIDA) would pay for the project as it already has a liability of over Rs 7,000 crore from the developer.

When the authority responded that it is a mass transit project essential for the benefit of the public and funds will be made available, the department asked NMRC to check if a PPP model is viable.

However, NMRC, which will submit a report soon, is of the opinion that a PPP model is not feasible and will create delays.

NMRC executive director P D Upadhyay said, “It doesn’t seem feasible as the new metro line is just an extension of an existing one and not a new project. The rolling stock, grid and several other infrastructure are already in place and the same will be used for this line. We just need to construct stations.”

He added that a PPP model might lead to delays.

“We will have to hire a concessionaire for the project if we go for a PPP model. This will cause delays and may increase the overall cost,” said Upadhyay.

While a PPP model is being explored, there are also concerns about who will pay GST and whether it can be waived for such mass transit projects. The proposed metro extension towards Greater Noida West was announced by chief minister Yogi Adityanath during the inauguration of the Aqua Line metro in January.

The extension will connect the Sector 51 metro station to Knowledge Park V through a 14-km-long metro line. The first phase, in which five stations till Sector 2 of Greater Noida West will be built, is expected to cost Rs 11 crore.