Pune metro seeks advisor for financial viability of Metro Line 4 and 5

21 Sep 2023 CW Team

PMRDA has received the Detailed Project Report (DPR) for Pune Metro Line 4 (Shivajinagar to Loni Kalbhor with a spur to Saswad and Swargate) from the Delhi Metro Rail Corporation (DMRC), while Maha-Metro possesses the DPR for Pune Metro Line 5 (Khadakwasla to Kharadi).

The common stretch connecting Swargate-Pulgate-Hadapsar (Magarpatta) serves as a vital link between the two metro lines, connecting Swargate to Hadapsar and Kharadi to Khadakwasla.

To enhance the existing public transport system, the state government has established a 20-member Pune Unified Metropolitan Transport Authority (PUMTA), chaired by the Pune Divisional Commissioner, tasked with making recommendations.

Rinaj Pathan, Superintendent Engineer at PMRDA Metro, stated, "In order to develop the shared stretch, PUMTA, in its meeting, has directed PMRDA to engage a Transaction Advisor (TA) to evaluate the metro lines for PPP (public-private partnership) or EPC (engineering, procurement, and construction), taking into account financial viability, government risk, and citizen convenience (fare structure, interchange facilities, etc.). As a result, we have issued a Request for Proposal (RFP) for the proposed metro lines 4 and 5 on a PPP model and will submit our findings to PUMTA."

The Transaction Advisor's responsibilities will also include estimating revenues from real estate and other sources, reviewing project costs and their impact on government resources, developing a revenue model, preparing the concession agreement, conducting financial assessments, and creating tender documents.

Atul Gadgil, Director (Work) at Maha-Metro, explained, "We have submitted DPRs for the Kharadi to Khadakwasla and Swargate to Hadapsar routes to the Pune Municipal Corporation (PMC). PMRDA has also prepared a DPR for the Kharadi to Khadakwasla and Civil Court to Loni Kalbhor routes. Maha-Metro is a jointly-owned company of the Government of India and the Government of Maharashtra, while PMRDA is developing the metro project on a PPP model. Therefore, the financial feasibility of the common metro stretch is being thoroughly examined before making a final decision."

Established in 2016, Maha-Metro is 50:50 joint ventures between the government of India and Maharashtra. PMRDA has already awarded the contract for the development of the 23.203-km Pune Metro Line 3 project on a PPP basis.

According to Maha-Metro officials, the DPR for Phase 2, which includes the 25.862-km Khadakwasla-Swargate-Hadapsar-Kharadi metro rail link, and the 6.118-km Paudphata-Warje-Manikbaug route, is estimated to cost Rs 90.74 billion, with Maha-Metro raising Rs 18.95 billion in loans and contributions from both the centre and the state towards the project. Additionally, the Vanaz to Chandni Chowk route spanning 1.112 km and the Ramwadi to Wagholi route covering 11.633 km are projected to cost Rs 36.09 billion.

The Pune Metropolitan Region Development Authority (PMRDA) plans to appoint a Transition Advisor (TA) for Metro Line 4 (Civil Court to Loni Kalbhor) and Line 5 (Kharadi-Khadakwasla) to assess the financial feasibility of developing the shared section of the metro system in collaboration with the Maharashtra Metro Rail Corporation (Maha-Metro).PMRDA has received the Detailed Project Report (DPR) for Pune Metro Line 4 (Shivajinagar to Loni Kalbhor with a spur to Saswad and Swargate) from the Delhi Metro Rail Corporation (DMRC), while Maha-Metro possesses the DPR for Pune Metro Line 5 (Khadakwasla to Kharadi).The common stretch connecting Swargate-Pulgate-Hadapsar (Magarpatta) serves as a vital link between the two metro lines, connecting Swargate to Hadapsar and Kharadi to Khadakwasla.To enhance the existing public transport system, the state government has established a 20-member Pune Unified Metropolitan Transport Authority (PUMTA), chaired by the Pune Divisional Commissioner, tasked with making recommendations.Rinaj Pathan, Superintendent Engineer at PMRDA Metro, stated, In order to develop the shared stretch, PUMTA, in its meeting, has directed PMRDA to engage a Transaction Advisor (TA) to evaluate the metro lines for PPP (public-private partnership) or EPC (engineering, procurement, and construction), taking into account financial viability, government risk, and citizen convenience (fare structure, interchange facilities, etc.). As a result, we have issued a Request for Proposal (RFP) for the proposed metro lines 4 and 5 on a PPP model and will submit our findings to PUMTA.The Transaction Advisor's responsibilities will also include estimating revenues from real estate and other sources, reviewing project costs and their impact on government resources, developing a revenue model, preparing the concession agreement, conducting financial assessments, and creating tender documents.Atul Gadgil, Director (Work) at Maha-Metro, explained, We have submitted DPRs for the Kharadi to Khadakwasla and Swargate to Hadapsar routes to the Pune Municipal Corporation (PMC). PMRDA has also prepared a DPR for the Kharadi to Khadakwasla and Civil Court to Loni Kalbhor routes. Maha-Metro is a jointly-owned company of the Government of India and the Government of Maharashtra, while PMRDA is developing the metro project on a PPP model. Therefore, the financial feasibility of the common metro stretch is being thoroughly examined before making a final decision.Established in 2016, Maha-Metro is 50:50 joint ventures between the government of India and Maharashtra. PMRDA has already awarded the contract for the development of the 23.203-km Pune Metro Line 3 project on a PPP basis.According to Maha-Metro officials, the DPR for Phase 2, which includes the 25.862-km Khadakwasla-Swargate-Hadapsar-Kharadi metro rail link, and the 6.118-km Paudphata-Warje-Manikbaug route, is estimated to cost Rs 90.74 billion, with Maha-Metro raising Rs 18.95 billion in loans and contributions from both the centre and the state towards the project. Additionally, the Vanaz to Chandni Chowk route spanning 1.112 km and the Ramwadi to Wagholi route covering 11.633 km are projected to cost Rs 36.09 billion.