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FM no for Metro funds

The Union Finance Ministry has categorically refused to provide Rs650-crore fund for the Mumbai Metro project, rejecting the Prime Minister's public commitment.

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The Union Finance Ministry has categorically refused to provide Rs650-crore viability gap fund for the Mumbai Metro project, thus rejecting the Prime Minister Manmohan Singh’s public commitment made to Mumbaikars last year.

Chidambaram’s refusal was conveyed to the Chief Minister Vilasrao Deshmukh and the Finance Minister Jayant Patil on Thursday, when the two had lined up to meet the Planning Commission about the fund allocated for Metro project.

The state leaders were, in fact, told by the Union Finance Ministry to now try their luck with the Union Urban Development Ministry under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

Apart from the Metro rail project, other important projects given top priority by Prime Minister Office (PMO) during his visit to the city after the 26/7 deluge included the Middle Vaitarna (Rs 1,600 crore), which again awaits technical clearance from various Central departments.

Of the total cost of the first phase of the Metro rail project — Rs2,356 crore — the state had urged the Centre to help raise Rs650 crore to bridge the viability gap. This the Prime Minister had commited to on his visit. 

The state government had then argued that the Finance Ministry had provided funds for Kolkotta and Delhi metro, so why not Mumbai?

However, the State Finance Minister Jayant Patil on Friday said, “We have been told to rework the viability fund gap taking the Urban Development Ministry for the Metro railways into confidence.” But state leaders are not willing to let the Metro project suffer because of the shortfall or the Center’s denial for funds, he added.

Although the state is pleased with the Planning Commission’s Rs20,200-crore annual outlay for Maharashtra for 2007-8, it has realised that technical hurdles in various departments at Centre are the reasons for the delay in the allocation of funds for the city’s mega-projects.

“The Centre has released only Rs20crore for the Rs502-crore Sewerage Disposal project and Rs400 crore for the Rs1200-crore Brimstowad. The Rs 1,600-crore Middle Vaitarna project of which Centre will provide Rs 1,364 crore is still in its approval stage,” Patil said.

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