Pune mulls Mumbai model to speed up metro project

June 17, 2013

Radheshyam Jadhav, TNN |

 PUNE: The Pune metro project may follow the Mumbai model of public private partnership (PPP) which means increased involvement of the Centre in the funding process.

The Maharashtra government and the Pune Municipal Corporation (PMC) are mulling over Mumbai metro model of Public Private Partnership (PPP) involving central funds to expedite the Pune metro project.

The recent meeting of the state urban development department (UDD) with PMC officials concluded that the Union government’s PPP model would help the Pune metro project raise the required funds.

A PMC official said that urban transport is inter-twined with urban development and is under the purview of the state government. The concerned state and the city implementing urban transport project need to work on financial model and hence the state government is tapping options for Pune metro funding. The PPP model involving central funding has been adopted for the Hyderabad metro project (71.16 km) and Mumbai metro line 1 with length of 11.40 km and line 2 with length of 31.871 km. According to the state and PMC officials this model would help to avoid any further delay to start the project.

In June last year, the state cabinet gave its assent to the much-awaited Pune metro rail project, approving the 14.925-km elevated route from Vanaz to Ramwadi. The cabinet also decided to form the Pune Metro Rail Corporation (PMRC) for implementing the project, which is planned to be completed within the next four years. The cabinet nod for the metro project had come close on the heels of the union urban development ministry’s decision to consider metros in cities with a population of more than 20 lakh.

The overarching model for Pune metro will be Delhi Metro Rail Corporation’s (DMRC) proposed model, where 10% of the project cost will be contributed by the PMC while the state and Centre will contribute 20% each.

The remaining 50% will be raised by a special purpose vehicle (SPV) using various options like build-operate-transfer (BOT) and public private partnership (PPP).

The PPP model opted by Hyderabad and Mumbai has helped these cities get substantial Union government funding along with the PPP investment, said the state officials in the meeting. The PMC has been asked to work on a proposal to be submitted to the Union government.

The Metro Story


In 2006, Union minister Sharad Pawar told the PMC and the PCMC to submit a plan for a metro. DMRC’s expertise was sought and the corporation recommended its model.


The corporation suggested setting up of a Pune Metro Rail Corporation to oversee all options. Completion target set for 2014-15 at a cost of Rs 8,401 crore for the first corridor from Pimpri-Chinchwad to Swargate and Rs 9,534 crore for second corridor from Vanaz to Ramwadi.


10% of the total project cost to be contributed by the PMC while the state and Centre to give 20% each. The remaining 50% will be raised by the special purpose vehicle (SPV) using options like Build-Operate-Transfer (BOT) and Public Private Partnership (PPP).




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