Land Cost to Compensate for PMC & PCMC’s Share of Funds in Pune Metro Project

The Maharashtra Metro Rail Corporation (Maha-Metro) will deduct the cost of land provided by Pune and Pimpri Chinchwad Municipal Corporations for Pune Metro Project from their share of fund contribution of 1,378.30 crore.

Atul Gadgil, Director, Maha-Metro said, “The share of the local municipal corporations is Rs 1,378.30 crore, however, the local civic bodies have also contributed by giving lands for the project. Thus, the land cost will be deducted from their share which is marked in the detailed project report. The civic bodies will be fairly compensated.”

Both the state and central government will contribute 20 per cent each to the 32.5-km metro project. Ten per cent is being borne by the Pune and Pimpri Chinchwad municipal corporations, while the remaining 50 per cent will be raised through financial institutions.

“The total cost of the metro project is Rs 11,420 crore. The central government will contribute Rs 1,954 crore; Rs 2,256.20 crore is the state government’s share; the PMC and PCMC will contribute Rs 1,378.30 crore. The remaining cost will be covered by a Rs 5,831.50 crore loan given by the European Investment Bank (EIB),” said Gadgil.

Maha-Metro officials have submitted the financial status of the project to Union minister for environment and forests, Prakash Javadekar, at a meeting conducted last week.

According to the report submitted, as of November 2019, Maha-Metro has received Rs 1,190 crore from the central government; Rs 694.77 crore from the state government; Rs 1,500 crore from financial institutions; and Rs 50 crore from civic bodies. A total of Rs 3,434.77 crore has been received as of November 2019.

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