Maharashtra govt to frame policy on PPP projects: CM

We will ensure 100% transparency, says Devendra Fadnavis

Maharashtra Chief Minister Devendra Fadnavis said here today that his government would frame a policy to guide public-private partnership (PPP) projects, a day after the Bombay High Court allowed an increase in Mumbai Metro railway ticket fares.

"If you design a project and if you invite proposals transparently, such things do not arise. If you lack transparency, if there is ambiguity, if there are lop-sided agreements, then such things are witnessed," he told reporters on the sidelines of the Pravasi Bharatiya Divas here.

He said the government would soon frame a policy to guide public private partnership (PPP) projects, laying stress on transparency.

"We will ensure 100% transparency. There will be no hidden agreements. Everything will be absolutely transparent," he said, referring to the way his government would deal with the issue.

Reacting to the Bombay High Court's verdict allowing Reliance Infrastructure's subsidiary Mumbai Metro One (MMOPL) to increase fares, Fadnavis said that his government would appeal against the order in the Supreme Court.

MMOPL would charge initial fares of Rs 10, Rs 20, Rs 30 and Rs 40, as decided by its board earlier, as against the existing promotional fares of Rs 10, Rs 15 and Rs 20 for the 11.4 km Versova-Andheri-Ghatkopar (VAG) corridor.

The High Court accepted the argument that MMOPL was incurring losses to the tune of Rs 85 lakh per day, even as 2.65 lakh commuters travel daily on the route.

It may be noted that the previous Maharashtra government led by Prithviraj Chavan had protested against fare hikes by the private operator, which led to the court battle.

In his final days as Maharashtra Chief Minister, Chavan had also threatened to take over the project.

Fadnavis also said his government has worked out an alternative to the local bodies tax (LBT) and would soon abolish levy.