The cost for laying the ambitious Light Metro along 35.12 km in Thiruvananthapuram and Kozhikode has gone up by ₹700 crore from ₹6,728 crore with the incorporation of parameters such as Transit-oriented development plan, Value capture finance and public-private partnership (PPP) in the new Metro Rail policy.
The 17.99% Economic Internal Rate of Return (EIRR) for the Thiruvananthapuram project and 17.39% for Kozhikode have also gone up as per the ‘reworked’ Detailed Project Report (DPR) prepared by the Delhi Metro Rail Corporation (DMRC) under Principal Adviser, DMRC, E. Sreedharan.
Automatic fare collection and operation of lifts and escalators in light metro stations in the two cities had been included in the PPP mode in the ‘Supplement to DPR’ submitted to Chief Secretary K.M. Abraham, Principal Secretary, Public Works Department, G. Kamalavardhana Rao, and Kerala Rail Transit Ltd (KRTL), the special purpose vehicle (SPV) set up for implementation and subsequent operation and maintenance.
Official sources told The Hindu that the DMRC, the turnkey consultant for the project, has recommended an additional tax on property along the 500-m stretch on both sides of the metro corridor in the two cities for Transit-oriented development plan.
Additional floor area ratio (FAR) at a price has also been suggested along the corridor for Value capture finance along with Unified Metropolitan Transport Authority (UTMA). A Comprehensive Mobility Plan (CMP), the long-term vision for movement of people and goods and strategy for meeting the vision, was earlier prepared by Natpac and submitted to the Ministry soon after the DPR was submitted.
The DPR prepared by the DMRC, that was given the administrative nod by the Cabinet on September 8, 2016, and was awaiting the Centre’s approval, was reworked based on appraisal guidelines for metro rail project proposals of the Union Ministry of Housing and Urban Affairs (MoHUA) issued in September.
The light metro project was proposed by the DMRC with 20% equity each from the State and Centre and remaining 60% through external funding or domestic borrowing. The DPR reworked as private participation either for complete provisioning of metro rail or for some unbundled components was made an essential component for seeking Central assistance as per the Metro Rail policy.
The supplement DPR now needs Cabinet approval to be forwarded to the MoHUA, official sources said. Union Minister for Housing and Urban affairs Hardeep Singh Puri has also sought the reworked DPR for expediting the clearance.
