News / Go-ahead for Ludhiana Metro Rail Project as a PPP project

Go-ahead for Ludhiana Metro Rail Project as a PPP project

🕔 June 24, 2011

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The Punkab Cabinet approved the Detailed Project Report (DPR) for the Ludhiana Metro Rail Project prepared by the Delhi Metro Rail Corporation.

The DPR states that a light metro rail should be adequate to meet not only the traffic needs for the present but for the coming 20 to 25 years also.
The metro in Ludhiana will be of total 29 kilometers, of which 22 kilometers will be overhead and only 7 kilometers will be underground.
The state cabinet approved detailed project report (DPR) for the Ludhiana Metro Rail Project and a go-ahead has been given for its execution in the public private partnership (PPP) or build operate transfer (BOT) model.
The cabinet decision comes after the state proposed to the Centre for viability gap funding for the R8,000 crore plus project. It had asked for Viabiity gap funding (VGF) scheme that provides financial support in the form of grants to infrastructure projects undertaken through PPPs with a view to make them commercially viable.
A top official in Punjab chief minister's office is known to have said Punjab chief minister has sent a demi official (DO) letter to Union finance minister requesting him to treat Ludhiana city as the special case to fund viability gap on the pattern of Delhi Metro.
The DO letter says that "Ludhiana, the Manchester of India has more than 27,000 medium and small-scale industries, was providing employment to migrant people who commute intra-city and to adjoining industrial towns like Mandi Gobindgarh and Khanna. It was only in national interest that the Centre has to adopts this project."

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