Question : Funding for Metro Rail Projects

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:

(a) the names of cities in which the Government proposes to start metro rail services in the country along with the status thereof, State-wise including Gujarat, Karnataka and Uttar Pradesh;
(b) whether the Government has finalized the funding of the metro rail projects in various states and if so, the broad terms of its repayment;
(c) the names of cities where construction work for running metro rail services is being undertaken and the time by which the same is likely to be completed;
(d) the time by which the construction work for metro rail is likely to be started in the remaining cities, state-wise including Uttar Pradesh; and
(e) the details of funds allocated by the Government for metro rail projects during the last three years, state – wise?

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI HARDEEP SINGH PURI)

(a) Urban transport, which is an integral part of urban development, is a state subject. Hence, the respective state government’s one responsible for initiating and developing urban transport infrastructure including metro rail projects. The Central Government considers financial assistance for metro rail proposals in cities or urban agglomerates, on the basis of the feasibility of the proposal and availability of resources, as and when posed by the concerned state governments.
(b) The metro rail projects which are 50:50 joint ventures of Government of India and respective state government are funded through equity/grant, subordinate debt (interest free) and sovereign loans. Equity and grant are not repayable. Subordinate debt is repaid after the full repayment of sovereign loan. The sovereign loan is repaid by Special Purpose Vehicle (SPV) over a period of 15 to 30 years after the moratorium period which could vary from four to ten years. The interest rate of sovereign loan is based on six-monthly Euribor (Euro Interbank Offered Rate) for development banks in Europe, six-monthly LIBOR (London interbank offered rate) for multilateral development banks and from 1 to 2.4 % for Japan International Cooperation Agency (JICA).

(c) The details of cities and completion date of under construction metro rail projects which are 50:50 joint ventures of Government of India and respective state government are given in Annexure-I.

(d) Does not arise in view of (a) above.

(e) The details of funds released by Government of India for metro rail projects which are 50:50 joint ventures of Government of India and respective state government, during the last three years, state – wise are given in Annexure-II.

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