State Cabinet okays revised cost of Rs 9,279 crore of Ngp Metro’s 1st phase
   Date :05-Oct-2022

Ngp Metro 
 
 
Staff Reporter
Maharashtra Government at its cabinet meeting held on Tuesday approved revised expenditure of Nagpur Metro (Phase-1) that is now pegged at Rs 9,279 crore. Urban Development Department (UDD) moved the Cabinet note, wherein it mentioned that first phase of the metro project in second capital has overshot the budgeted amount by Rs 599.6 crore. Central Government and Maharashtra Government are equal partners in Maharashtra Metro Rail Corporation Limited (MMRCL) and nod from either side is necessary for approval to expenditure.
The meeting presided over by Chief Minister Eknath Shinde was informed that sanctioned cost of the project was Rs 8,680 crore but the main factor that led to sharp rise is delay in staring the construction work. As per the plan, the project period was envisaged from 2013-2018 but actual work started from year 2015 as several loose ends were needed to be tied-up before embarking on the mega work schedule.
The delay cost dearly as during this period there was sharp escalation in foreign exchange rate due to significant rise in Dollar cost and inflation also shot up making prices of all products dearer. Another major factor that led to MMRCL incurring extra cost was implementation of new Land Acquisition and Rehabilitation Act (LA&RA) rules wherein compensation cost increased. Explaining the point, Akhilesh Halve, Deputy General Manager (DGM), Corporate Communication, said that if earlier cost of compensation was Rs. 100 post notifying of new rules it increased to Rs. 250. This rise of 2.5 in cost rise disrupted the entire planning but still MMRCL management smart play resulted in savings on other front and hence they managed to keep the rise to 12 per cent instead of projected 26 per cent.
Also two additional metro stations other than those mentioned in Detailed Project Report (DPR) led to increased expenditure. Now State Government will release it share in extra expenditure that would enable Maha Metro meet its obligations, particularly of contractors and suppliers.
In the Nagpur Metro Rail Phase-1 project, Automotive Chowk to MIHAN Route No. 1 and Prajapati Nagar to Lokmanya Nagar Route No. 2 will cover a total of 38.215 km. It consists of two lines in length and 38 stations. This project was approved in 2014. Of the total length 26 km metro is running above while remaining 12 km of the route will be operational soon.