Page 12 - CO Digital April 2018

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While the amount of `15,000 Crore allotted in 2018 Union Budget “We need to do more to speed up a Metro revolution in the country.
2018 is the lowest in the last three years, the nature and scale of the China is building Metros at the rate of 300 kms every year, whereas
activity has signi cantly ratcheted up. India’s performance is only 25 kms of which 18 kms is contributed
With the new Metro Rail Policy, 2017, the role of the private by DMRC. For the size of this country and the number of cities to
sector is now mandatory. Many metro projects like Kochi, Pune be covered, we have to build Metros at the rate of at least 200 kms
& Vijayawada are exploring the PPP model with the participation per year for the next 15 years.”, says Dr. E. Sreedharan, Principal
of banks and financial institutions. But the Adviser, DMRC.
of banks and financial institutions. But the
success of the PPP model remains debatable. He recommends setting up an expert committee, which will
success of the PPP model remains debatable.
Dr. E. Sreedharan, Principal Adviser, DMRC, identify the country’s needs and draw up a roadmap for the next
Dr. E. Sreedharan, Principal Adviser, DMRC,
a.k.a. 15 years. He says, “A reliable and doable Metro policy, with GoI
a.k.a. METRO MAN OF INDIA for one does
not support this model. “PPP has never succeeded taking the lead, identifying funding routes, a common agency for
not support this model. “PPP has never succeeded
anywhere in the world – let alone in India. And laying technical and safety standards for all Metros – (now Indian
anywhere in the world – let alone in India. And
this insistence o en delays the sanctioning of Metro Railways have this role with no domain knowledge) – suggesting
this insistence o en delays the sanctioning of Metro
projects.” uite simply put, Metro is a very capital- fast routes for Land acquisition are urgently needed.”
projects.” uite simply put, Metro is a very capital-
intensive segment including land acquisition cost to civil works, While lauding the governments e orts in improving the country’s
to signalling, and rolling stock costs. It might not be a viable ease of doing business ranking, S V Desai, Executive Vice President
proposition for private companies, given the low tra c volumes & Head – Heavy Civil Infrastructure IC, L&T Construction
and slow revenue generation in tier 2 cities. Private players generally wants the approval process to move faster. “All construction
expect a 12-15 per cent return compared to the average investment projects require umpteen number of statutory
projects require umpteen number of statutory
return of over 2-3 per cent for Metro. For example, Reliance approvals and clearances by various authorities
approvals and clearances by various authorities
hence the introduction of a single window for
Infrastructure took 7 years to complete 11 km of the Mumbai Metro hence the introduction of a single window for
clearing all these approvals will de nitely pave
Line 1 and now claim to be losing `50 lakh per day in revenue every clearing all these approvals will de nitely pave
the way for better planning and faster execution.
day despite their very high fares. the way for better planning and faster execution.
AS per Amit Bhatt, Director, World Resources Institute, India, ere is also the need to size projects properly
ere is also the need to size projects properly
a company o ering solutions for urban settlement, (high contract value and scope) which will enable
a company o ering solutions for urban settlement,
(high contract value and scope) which will enable
the fault lies in limiting the de nition of PPP. better optimization of resources and be minimizing the cost of
the fault lies in limiting the de nition of PPP.
“Various types of PPP can be implemented.” He construction.” says Desai.
“Various types of PPP can be implemented.” He
gives the example of the di erence between Delhi’s With such a slew of metro projects and controversies, we deemed it
gives the example of the di erence between Delhi’s
airport line, which was built by DMRC and Delhi t to take another look at what’s new on the metro scene.
airport line, which was built by DMRC and Delhi
Airport Metro Express Private Limited (DAMEPL)
Airport Metro Express Private Limited (DAMEPL)
constructed under PPP model and Gurugram’s NEW LINES OPENING
constructed under PPP model and Gurugram’s
Rapid Metro, which was nation’s rst privately owned metro project Ahmedabad - e total length of the Ahmedabad Metro Phase
(undertaken by a consortium of DLF Metro & IL&FS). One will be 39.26 km, of which 6 km will be underground and the
While the former was stalled when DAMEPL pulled out of the remainder will be elevated.
project quoting slow revenue recovery, the latter has been running e construction for the 6.33 km underground tunnel for the
“fairly well”. 39.25 km metro underground section of the Ahmedabad Metro
12 CONSTRUCTION OPPORTUNITIES|APRIL 2018