Gurgaon Metro: Foundation laid, project to be completed by mid-2012

Haryana Chief Minister Bhupinder Singh Hooda laid the foundation stone of the Gurgaon Metro Rail in DLF Phase III at a public event on Tuesday.

The Haryana government awarded the construction of the mass transport system in Gurgaon to a consortium of DLF and Infrastructure Leasing and Financial Services Limited (IL&FS) last month. This is the first time a private company will build and operate a public transport system in the country.

A Special Purpose Vehicle (SPV) has been formed to construct and operate the system. The entire project is estimated to cost Rs 900 crore, which will be raised partly through loans and the rest by equity. A DLF spokesperson said the SPV would raise Rs 700 crore within the next six months. The mode of fund-raising will be decided in due course of time.

The Gurgaon Metro Rail will run on an 8.5-metre high elevated track and will span 6.1 km. There will be six stations: Sikandarpur, DLF Phase-II, Belvedere Tower, DLF Phase-III, Gateway Tower and Mall of India.

Haryana has awarded the concession for a period of 99 years to build and operate the Metro system. DLF Metro will hold 26 per cent share, while 74 percent stake will be held by IL&FS. The project is to be completed by mid-2012, Hooda said.

On fund-raising plans for the project, DLF Vice-Chairman Rajiv Singh said, "IL&FS has the mandate to raise the total loan amount. In today's market scenario, it is a little difficult, but IL&FS is confident of raising the money in the next few months."

DLF would also contribute its share of equity, apart from other logistic support, Singh added.

Regarding the future expansion of the project, Singh said, "We are anticipating that in the long term, the project has the potential of being increased by another 20 km with an investment of around Rs 2,000 to 3,000 crore."

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