Agreement for Metro between Punjab, Haryana, Chandigarh to be finalised

A formal agreement between the states of Punjab and Haryana as well as Chandigarh over the modalities of the Metro Rail will now be initiated.

The UT Administration is writing to the Punjab and Haryana governments seeking their consent for the preparation of a Memorandum of Understanding.

A discussion about the need to have a formal agreement took place during a meeting held recently at Delhi with the officials of the Ministry of Urban Development, where, apart from Chandigarh, representatives of Punjab and Haryana were also present.

The modalities of sharing of the cost of construction will be formalised. Of the total route length of Metro Rail which is 37.57 kilometres, a substantial part of 23.36 kilometres is in Chandigarh. Of the remaining, 7.81 kilometres is in Haryana and 6.41 kilometres in Punjab. In Chandigarh within the sectoral grid, the Metro will be underground, while outside it will be elevated. The total cost of the project is Rs 10,900 crore.

UT Adviser K K Sharma says that the Administration is taking the initiative and writing to Punjab and Haryana asking for the modalities to be finalised. "A meeting will be held in the coming days between the representatives of the states and the officials of the Administration," he said.

Apart from finalising the modalities, the Administration also has to initiate the process of setting up of a Special Purpose Vehicle (SPV). This is expected to be set up at an initial investment of Rs 50 crore.

The SPV will comprise of officials who will deal with the financial and technical expertise of the project, among other things. These experts will be expected to justify the requirement of Metro Rail at different platforms.

It has been several months since the Detailed Project Report of the Metro Rail was prepared.

As per the DPR, of the investment of Rs 10,900 crore, Rs 8,245 crore will be given by Chandigarh, Rs 1,427 crore by Haryana and Rs 1,228 crore by Punjab. The model for cost sharing will be worked out.

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