To fund Metro project,Admn plans to auction land en route

An SPV comprising the Chandigarh Administration and Ministry of Urban Development as joint venture partners with a 50:50 equity,is expected to be formed. The governments of Punjab and Haryana are also expected to join the SPV at a later stage,when the Metro is extended to Mohali and Panchkula in Phases II and III respectively. The SPV would own the Metro system and be responsible for its implementation.

This funding from local sources comes in addition to the funds being already provided by national and international financial institutions.

In the report,it has been proposed that the unused commercial land be auctioned in stages every year over a period of 15 years,to meet the requirement of annual debt repayment. If the finances for equity of Chandigarh Administration cannot be arranged through budgetary resources,this can also be met through auction of the remaining commercial land.

For now,50 per cent of the total 230 acres can be considered for commercial sale. In the past,this commercial land had been auctioned at the rate of Rs 3 lakh per sq yard. The same rate is expected to prevail now. Though this may be a conservative estimate for generating revenue through auction of unused land,the actual realisation may be more,keeping in view the rupee value and land price.

The proposed Metro system will pass through the Himalaya Marg and Vikas Marg,where the said land is lying vacant. The proposed system is expected to greatly benefit businesses that will come up on these roads.