DMRC to get land at concessional rates: DUISB

By Accommodation Times News Servcie

The Ministry of Urban Development (UD) has turned down the demand of the Delhi Government agencies which wanted the Delhi Metro Rail Corporation (DMRC) to pay market rates for allotment of land for the construction of lines under the Phase-III project.

The Delhi Urban Shelter Improvement Boards (DUSIB) had earlier refused to provide land to the DMRC at concessional rates, thereby increasing the cost of projects by Rs 1003.48crore. The issue was taken up in the DMRC Board meeting wherein it was decided to submit the proposal of additional cost for the approval of Empowered Group of Ministers in the Central government.

Following the matter, the ministry has advised the Delhi Government to either give the additional amount as grant to the DMRC or in the form of interest-free subordinate debt to meet the extra burden of Rs 1003.48crore.

“The proposal has been examined by the ministry. As a matter of policy for all the Metro Rail projects in the country, with the exception of Delhi, the entire cost of land including Central government land, resettlement land, is made by the state government,” said the Secretary of Urban Development Ministry in the letter, adding that the cost of land belonging to the state government is not included in the total cost of the project while working out the sharing pattern.

It also said that only in case of Delhi since a considerable portion of land is owned by the Central government, the cost of land for Metro construction in the city is shared on 50-50 basis between both the governments.

However, the senior officials of DUSIB said that DMRC is well under the capacity to pay the slated prices. “We are not dependent on government support and generate our own finances with the capitalization of land available to us. The DMRC earns huge revenue from advertisements and can pay at market rates,” said a senior DUSIB official.

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