The central government has agreed in principle to provide 20% viability gap funding for the Rs 7,500 crore metro rail line project being executed by the Pune Metropolitan Regional Development Authority (PMRDA) through a PPP mode, Kiran Gitte, CEO and metropolitan commissioner, PMRDA said. This is the third line of the metro covering 23.1 km from the IT hub at Hinjewadi to Shivajinagar in the heart of the city. While the finance ministry has approved viability gap funding, the Maharashtra government has indicated that it is not in a position to provide the amount, and therefore, the PMRDA will have to arrange these funds on its own, Gitte said. With the central government approval the metro has entered the execution mode, Gitte said. Unlike the first two lines of Pune metro rail which is being entirely funded by the government, the third line will take the PPP route. PMRDA has also short-listed three companies that could bid for the project. Tata Realty Siemens, IRB in consortium with Chinese and Malaysian companies and ILFS have qualified to bid for the project, Gitte said. The successful bidder will have to bring in 60% of the funding for the project —30% of that in equity and 70% debt.
PMRDA will most likely follow the Hyderabad metro model of monetising real estate to fund the project, Gitte said.
PMRDA will have around 100 acre for the metro. This includes 50 acre at Maan in Hinjewadi, where the car shed is to be located, and 50 km is along the 23.1 km route, he said. They could provide higher FSI in this corridor to make the real estate attractive. All the process is expected to be completed within six months and work on the metro is expected to start by December ’17, he said.