1. New Metro Rail policy: Nowhere in the world has PPP in metro policy succeeded, says E Sreedharan; India’s Metroman invokes stats

New Metro Rail policy: Nowhere in the world has PPP in metro policy succeeded, says E Sreedharan; India’s Metroman invokes stats

According to the New Metro Policy, Centre is looking to take a backseat in terms of funding and wants to make PPP mandatory for the Metro projects.

By: | Published: August 17, 2017 2:42 PM
PPP, metro policy, New Metro Rail policy, JV model, E Sreedharan, India's Metroman,  According to E Sreedharan, Metro construction is a non-profitable investment and any private firm looking forward to taking over such projects will want a turnover of at least 12-15%. Metro project on the other hand has never yielded profit more than 2-3%.” (PTI)

According to the New Metro Policy, Centre is looking to take a backseat in terms of funding and wants to make PPP mandatory for the Metro projects. According to E Sreedharan, Metro construction is a non-profitable investment and any private firm looking forward to taking over such projects will want a turnover of at least 12-15%. Metro project on the other hand has never yielded profit more than 2-3%.”

He highlighted the fact that the PPP in Metro rail has never succeeded completely. He calls it a ‘foolish thing’ to allow a private person enjoy the revenue put in through public investment. Prior to this, PPP in India was tried out in Mumbai, Hyderabad, and the Airport line of Delhi and all three turned out to be major failures.

The New Metro Rail policy is broadly based on the PPP model that includes constructing new Metro Rail systems through the Design-Build-Finance-Operate-Transfer mode, allowing private players to operate the service as well as supply rolling stock, and involving them in the maintenance and upgrade of infrastructure, according to the report.

According to Sreedharan, the JV model has done well with the state and Centre funding until now. The Centre is trying to reduce the entire burden from its shoulder and levying it on the state will only increase difficulties for them. On one hand when China is galloping way ahead by opening 300 km every year, India which is still working at a snail’s speed will be badly effected by this policy, explained Sreedharan.

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