The total amount of Central taxes for six Metro corridors under Phase IV is expected to be around Rs 3,000 crore.
The upcoming Delhi Metro Phase IV projects are going to be delayed as the Aam Aadmi Party (AAP) government has stated it will not reimburse 50 per cent of Central taxes paid by the Delhi Metro Rail Corporation (DMRC) anymore.
The total amount of Central taxes for six Metro corridors under Phase IV is expected to be around Rs 3,000 crore. With the Delhi government announcing that it will no longer reimburse 50 per cent of the Central taxes, there will be a shortfall to the tune of Rs 1,500 crore, which will delay the project. Further, the AAP government has directed the DMRC to generate revenue from property development.
It is pertinent to mention that the DMRC, set up in May 1995 under the Indian Companies Act, is an equal equity joint venture between the Government of India and the Delhi government. The latter bears 50 per cent cost towards equity, subordinate debt for land and subordinate debt for reimbursement of Central taxes. The Delhi government also reimburses the Delhi Value Added Tax (DVAT) paid by the DMRC.In a missive to the DMRC, the AAP government stated: "Since the government of NCT, Delhi being a Union Territory, is not getting a proportionate revenue share of Central taxes from Government of India as compared to other states, it shall not reimburse 50 per cent of the Central taxes."
The AAP government has claimed that so far, it has followed the procedure of 100 per cent reimbursement to the DMRC under its head but then it gets Rs 325 crore annually from the Centre, as part of the Central taxes' share. The government has been demanding to increase its share from the Central taxes as it has remained static since 2002.
On February 1, when Union Finance Minister Arun Jaitley presented the Union Budget 2017-18, Deputy Chief Minister and Finance Minister Manish Sisodia lashed out, saying, "Not a single rupee has been enhanced for Delhi since 2001-2002." He said Delhi deserves its legitimate share in the Central taxes to finance various developmental projects. He also said that he has requested the Centre to enhance the allocation from the current Rs 325 crore to at least Rs 5,000 crore a number of times.
Meanwhile, a senior IAS officer said: "This development will definitely delay the project." To resolve the issue, the Delhi government has directed the DMRC to generate revenue from property development. Its letter stated:
"Since the proposed projection of Rs 500 crore as property development is on the lower side, the DMRC should try to achieve a higher projection as property development. The DMRC should explore the possibility to work out the completion cost of all six corridors of Phase IV of Delhi MRTS project based on an escalation factor of 5-6 per cent, instead of 7.50 per cent."
The Delhi Cabinet had approved the Metro Phase IV in January this year. It will have six new corridors with a total length of around 103 km and is expected to be completed within six years, at an estimated cost of Rs 55,208 crore. The project will comprise a 67 km elevated road and would add 79 stations to the Metro network, of which 50 will be elevated. The new lines will add as many as 8.5 lakh passengers daily to the Metro ridership.
The six new lines that will connect outer Delhi and the Aero City are Rithala-Bawana-Narela, Janakpuri (W)-R K Ashram, Mukundpur-Maujpur, Inderlok-Indraprastha, Lajpat Nagar-Saket G-block, and Aero City-Tughlakabad.
With the completion of 103km Phase IV, the total length of the Metro corridor in the city will cross the 450km mark.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Delhi Metro")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}