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Operational loss in metro Phase IV project to be borne by Delhi govt, says SC

By Rantheep Singh6th September 20197th September 2019Delhi, India, News

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A view of the Supreme Court of India in New Delhi.

The bench directed both Centre and Delhi government to work out the modalities and release the amount of land cost within three weeks.

The Supreme Court on Friday said the operational loss, if any, in the 104 km long Phase IV of the Delhi Metro project would be borne by the Delhi government as it is a mode of conveyance in the national capital.

The Delhi government is bound to ensure that the financial health of Delhi Metro Rail Corporation (DMRC) is maintained properly and no steps are taken that might result in losses, it said.

The top court however directed that the land cost for the project would be borne by the Centre and the Delhi government equally, in 50:50 ratio.

A bench of justices Arun Mishra and Deepak Gupta asked the authorities concerned to ensure that no delay is caused in the Phase IV metro project and the total land cost of ₹2,447.19 crore is released forthwith.

The bench directed both the Centre and the Delhi government to work out the modalities and release the amount of land cost within three weeks.

The top court had on July 29 granted time to DDA to clarify its stand on increasing financial contribution, as proposed by EPCA, in three priority corridors of the fourth phase of the Delhi Metro project.

The 103.94 km long phase-IV of Delhi metro will consist of six corridors — Aerocity to Tughlakabad; Inderlok to Indraprastha; Lajpat Nagar to Saket G Block; Mukundpur to Maujpur; Janakpuri West to R K Ashram and Rithala to Bawana and Narela.

The Ministry of Housing and Urban Affairs (MoHUA) had on March 9 this year approved the 61.66 km, three priority corridors — Aerocity to Tughlakabad, R K Ashram to Janakpuri (west) and Mukundpur to Maujpur — at a cost of ₹24,948.65 crore.

The Environment Pollution Control Authority (EPCA) had suggested that DDA can be asked to give Rs 2,500 crore for the three priority corridors out of their agreed ₹5,000 crore for six corridors of phase-IV.

The EPCA, in its report filed earlier in the apex court, had said that the total share of Delhi government in the three corridors of phase-IV of metro is around ₹7,844.07 crore but the Delhi Cabinet in December 2018 approved only ₹5,994.50 crore.

“Therefore, the difference in financial terms is at most ₹1,800 crore, which constitutes some 7 per cent of the total project cost of these 3 key corridors,” the EPCA had said.

It had said DDA agreed to pay ₹5,000 crore for the six corridors and “its contribution for the first three corridors could be increased to either partially or completely taking on the difference between the Delhi cabinet approved cost for the three corridors as against the final approved cost“.

The apex court had on July 12 ordered that phase-IV of the Delhi metro project, which is estimated to add around 18.6 lakh riders per day, be implemented forthwith and construction work for it be started.

Of the 103.94 km to be constructed under phase-IV, 37.01 km will be underground while around 66.92 km will be elevated. The estimated cost of the project is ₹46,845 crore.

As per DMRC, its operational network is 343 km with current average daily ridership of nearly 28 lakh.

The issue of public transport had cropped up before the court as it was hearing a matter relating to air pollution in Delhi-National Capital Region.

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