A Month Before Delhi Government Signalled Approval After Two Years’ Delay, Metro Phase IV Cost Slashed By Rs 10,000 Crore 

The cost of Delhi Metro’s Phase IV had been slashed by Rs 10,000 crore in late September after a revised detailed project report (DPR). The step came just a month before the Kejriwal government, which delayed the approval for two years, signalling its willingness.

The Union Ministry of Housing and Urban Poverty Alleviation directed to prepare the revised DPR. According to it, Delhi Metro Rail Corporation (DMRC) has totalled the cost of all six corridors of Phase-IV at Rs 45,603 crore. It was Rs 55,208 crore in the first DPR submitted to the Central and Delhi governments in 2016.

“The fresh details of the Phase-IV project has not yet reached my office. But, if the cost has reduced by about Rs 10,000 crore, then it is good for all stakeholders. In the end, people’s money is being saved,” said Kailash Gahlot, Delhi transport minister.

DMRC states that the total expenditure on Phase-IV has been reworked keeping in mind current prices and a new tax regime. Taxes as per GST have also been taken into account. Even the earlier cost of Rs 55,208 crore had annual escalation factor of 7.5 per cent. After a review it was realised that the escalation could be reduced to 5 per cent per year” said Anuj Dayal, executive director, corporate communications, DMRC.

Delhi government’s contribution to the project is also reduced with them paying Rs 10,636.50 crore instead of 11,334.50 crores. The Delhi government gave in-principle approval to the project in May 2016 but did not follow up; which became another point of the contention between the Delhi government and the Centre, as reported by Hindustan Times.

The Delhi government apparently did not go ahead because it was worried about the cost involved and the subsequent fare hikes. A report by Delhi government’s finance department had stated that the project was a “colossal waste of money” and declared three of the six corridors “financially unviable”.