Metro cost

“The Delhi government had already approved Phase-iv in January, but GST happened and the entire funding pattern had to be relooked. I am yet to get the revised estimates,” said Delhi transport minister Kailash Gahlot.

A letter by Delhi Metro chief Mangu Singh this September to the city’s transport commissioner explains the increase in Delhi’s share of the cost. He wrote the ministry of housing and urban affairs “has desired that sharing of taxes in new regime (GST) should be agreed by GNCTD in the ratio of 1:2 between GOI and GNCTD respectively.”

GNCTD stands for government of national capital territory of Delhi.

Metro authorities can begin work only after approval from the Aam Aadmi Party government in Delhi and the Centre.

Delhi Metro refused to divulge details, saying the new estimate was based on a fresh study of the project in a GST environment.

“Since Phase-iv has not yet been approved, we would not like to comment on its costs or funding pattern,” a Metro spokesperson said.

Besides GST, a revised cost escalation rate from 7.5% to 5% also reflected in the reduced budget for the project, according to sources.

The project is expected to add 850,000 riders each day to the network. The new lines IV are Rithala-narela, Inderlok-indraprastha, Tughlakabad-aerocity, Lajpat Nagar-saket G Block, Janakpuri (West)-rk Ashram and Mukundpur-maujpur.