Centre, state govt will decide on Pune metro revenue sharing: Maha-Metro
This article was published on : January 27, 2021
Officials at the Maha-Metro said the Pune metro project is to provide faster and comfortable commute for residents of the city through the public transport system.
After the Pune Municipal Corporation (PMC) standing committee passed a resolution demanding a share of revenue from the non-fare box revenue source – on property leased to the Pune Metro rail – the Maharashtra Metro Rail Corporation Ltd (Maha-Metro), implementing the Pune metro rail project, said the decision on revenue sharing with the civic body will be taken by the Union and the state government.
Congress leader Ulhas Bagul had proposed that the PMC should demand a 50 per cent share in revenue that will be raised by Maha-Metro from the multi-modal hub with commercial establishments at the PMC-owned Swargate land. “The PMC forwarded the proposal to Maha-Metro and sought its response on the proposal. Thus, the civic body has to take a decision,” said Pune Municipal Commissioner Vikram Kumar.
Officials at the Maha-Metro said the Pune metro project is to provide faster and comfortable commute for residents of the city through the public transport system. The PMC is a partner in the project by contributing its land and finances. The project has been proposed by PMC and Maha-Metro is executing the project.
“The overall estimated project cost of Pune metro rail project is Rs 11,420 crore with union and state government having equal participation. A total of Rs 5,831.50 crore has been raised for the project through financial institutions. The PMC has put in investments worth Rs 951.6 crore in the project which is mainly through funding, land and rehabilitation cost,” said Maha-Metro.
As per the project, the Pune metro will have non-fare box revenue as a major source of revenue other than the expense from the actual fares. Revenue of 40-45 per cent is expected from the non-fare box source after the development of the property.
The PMC has provided 22,800 sq meters of land to Maha-Metro on lease for 30 years at Swargate where the underground metro station and multi-modal transport hub is proposed. This has been done as the PMC contribution of Rs 60.59 crore for the project. Also, it has been decided that there would be extension of lease for an additional 30 years.
The state government has declared Transit-Oriented Development (TOD) in the 500-meter periphery of metro stations in the city to enable the four-floor space index (FSI). This could lead to an increase in infrastructure development in the area and the PMC will earn revenue from development charges.
The non-fare revenue model is widely used to make the metro rail service economically feasible, effective operation and sustainable financial security for the metro rail along with repaying the loan for the project. It has been planned that 40 per cent of the operational cost would come from the fare while the remaining amount would be raised from the commercial establishment at Swargate.