UP expects foreign funds for Lucknow Metro project

For its proposed Lucknow Metro rail project, the Uttar Pradesh government is actively pursuing foreign funds. A seed capital of Rs 350 crore is to be provided by three State government agencies for the Metro rail project. UP Housing and Development Board, Lucknow Development Authority and UP State Industrial Development Corporation would contribute Rs 200 crore, Rs 100 crore and Rs 50 crore, respectively towards financing the initial works of the Metro rail project. For three financial years, this funding would be spread — 20 per cent, 40 per cent and 40 per cent respectively and would be invested during 2013-14, 2014-15 and 2015-16, respectively. Recently, the State government had decided for free transfer of 150 acres in the Chak Ganjaria farms to Lucknow Metro Rail Corporation, to increase the financial internal rate of return to over 8 per cent through commercial use.