Maha govt plans SPV for Pune metro

The Maharashtra government is planning to set up a special purpose vehicle (SPV) to raise funds for the upcoming metro railway project worth Rs 9,534 crore in Pune city. According to a detailed project report (DPR) prepared by the Delhi Metro Rail Corporation (DMRC), the city needs two metro rail routes of 31.5 km length, which would be operational by year 2014.

The Pune Municipal Corporation (PMC) had roped in DMRC to prepare a report and also suggest the options available to raise funds. Accordingly, DMRC has suggested PMC and the state government to follow public-private partnership model for this project and reduce costs by offering higher floor space index (FSI) to the concerned developer.

“The costs for the initial project is definitely very heavy and an SPV is needed to raise funds. Our department has already consulted this aspect with the PMC administration. We expect the PMC to prepare a final proposal and forward it to the government for a final call,” a top official from urban development department of government of Maharashtra told Business Standard.

The DPR suggests a first route of 16.58 km length that beings from neighbouring Chinchwad town and runs along Pimpri, Shivajinagar up to Swargate at a price of Rs 4,930 crore. The second route has a proposed length of 14.92 km and spans over Paud road, Deccan Gymkhana, Shivajinagar, Bundgarden, Yerawada up to Kalyani Nagar at a price of Rs 2,217 crore. Apart from a short underground patch, the corridors would be formed on elevated surface, the DPR says. Other aspects such as development of metro rail hub and taxes would add up to Rs 9,534 crore.

The project is expected to require 110 acres of land out of which, approximately 31 acres is in private custody. “We are expecting speedy approvals to this project to ensure, the 2014 deadline is met.