Metro rail SPV to be ayed early next week: CM

Nagpur: Chief Minister Devendra Fadnavis has said that he would clear the special purpose vehicle (SPV) for construction of Nagpur metro railway early next week. The SPV proposal has been cleared by all concerned departments of the state government and just needs the signature of the CM. Thereafter it will be sent to central government for approval.
The SPV will have either nine or ten members.Five members will be appointed by union government. The principal secretary (urban development), GoI, will be the chairman. He is the chairman of all metro rail projects in the country. State government will be represented by principal secretaries of urban development-I and finance, chairman of Nagpur Improvement Trust (NIT) and municipal commissioner. The state government may appoint a senior IAS officer as the managing director of NMRCL. Either NIT chairman or the municipal commissioner can also be appointed as the managing director. The MD will be stationed in Nagpur and look after the day to day affairs of NMRCL.
The SPV — Nagpur Metro Rail Corporation Limited (NMRCL) — is vital for execution of the project. The cost of the project has gone up by around Rs 2,000 crore due to two year delay in construction. This cost can be brought down only if the project is completed by 2018.
The current report prepared by Delhi Metro Rail Corporation (DMRC) envisages completion of the project in six years. Now NMRCL will have to do it in four years else NMC and NIT will have to bear the extra Rs 1,940 crore as union cabinet has cleared the proposal at 2012 prices — Rs 8,420 crore. The cost at 2014 prices is Rs 10,360 crore.
Fadnavis’ role will not end after clearing the SPV. He along with union transport minister Nitin Gadkari will have to ensure that central government doesn’t take much time in clearing the proposal and appointing the members. The report to build metro at a faster rate must be ready as soon as possible.
Sources in NIT said that work on the project should begin in second quarter of 2015 if the target of completing it by 2018 is to be achieved. The length of Nagpur metro is 38.2km. The CM has shown a lot of initiative in restarting the moribund Mihan. If Mihan becomes fully functional then metro railway will become vital for people working there.