The cost of the Metro Rail project between Versova-Andheri-Ghatkopar has shot up by almost 50 per cent, i.e. from `2,356 crore to over `3,500 crore.
“The consortium — Mumbai Metro One Private Limited (MMOPL) — constructing the Metro Rail has submitted documents related to the cost hike to our accounts department and we are studying the papers,” Rahul Asthana, metropolitan commissioner, MMRDA said.
According to Mr Asthana the additional cost will be borne by MMOPL itself. “As Metro Rail is a public-private partnership project, with MMOPL’s share being 74 per cent and government’s being 26 per cent including the
viability gap funding (VGP), the hike will be borne by the consortium,” he said.
As of now, the concession period is 35 years, but due to the “cost escalation,” it is likely to be extended.
Similarly, the first monorail project (Chembur-Wadala-Jacob Circle) of India has witnessed the sum amount going north. Sources have indicated that on a conservative side, the `2,450 crore monorail project may see an increase of around 20 per cent.
“We have not assessed the cost escalation, but it is expected soon and we will do it later as indices come in. These indices come once every six months,” said P.R.K. Murthy, chief of transport and communication, MMRDA.
In case of the monorail, the hike too will not be passed on to the public exchequer. “As it’s a
cash contract, the firms, which prepared the bids, should have accounted for inflation and other hikes,” Mr Asthana added.