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Par Panel calls for reduced dependence by Metro Rail Projects on Central Sector grants

 Agencies |  2017-05-21 07:38:10.0  0  Comments

Par Panel calls for reduced dependence by Metro Rail Projects on Central Sector grants

New Delhi : Calling for reduced dependency by Metro Rail Projects on Central Sector grants, a Parliamentary Panel has suggested that the Government should come out with innovative methods for raising funds for these projects. The Parliamentary Standing Committee, in its latest report, said though Metro is a way forward for improving Urban Transport Services but still Metro Rail Projects drain most of the budget estimate leaving other projects suffering from inadequate funds. The Committee noted that 52.61 per cent that is Rs 18,000-crore of total budget estimates(2017-18) that is Rs 34211.84-crore of the Ministry of Urban Development has been earmarked for Metro Rail Projects. The Panel was apprised that though Metros are getting high allocation but still they are short of their requirements. The Committee favoured that new options such as international cooperation/assistance should be identified for getting funds for Metro Rail Projects so as to reduce dependency of these projects on Central Sector grants. The Panel noted that for Bullet train between Mumbai and Ahmedabad, the project is assisted by Societies Nationale Dis Chemins De Fer Francais (SNCF) and Japanese International Cooperation Agency (JICA). The Committee was of the opinion that in the same way Metro projects should not depend much on Government budgetary support. In addition to the budgetary support, International-cooperation/assistance/long term aid should be sought for funding these Metro Rail Projects which are heavily capital intensive, the Panel said. Also the funds have been released when the projects are in the formulation stage and are reduced in the implementation stage. The Committee has strongly recommended that there should be adequate allocation of funds for those projects which are in the implementation phase so that they can be utilised properly.
--UNI

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