The Jaipur Metro Rail Corporation (JMRC) has begun an exercise to create a dedicated Metro fund by selling it land for future expansions.
According to JMRC officials, the corporation will auction its prime land, approximately 1.5 lakh sq m near B2 Bypass, to raise funds. E-auction for the scheme named as ‘Metro Enclave’ started on October 18 and will continue till November 18.
The amount received will be deposited in the dedicated Metro fund. “The JDA will auction the land on the behalf of JMRC. The amount will be transferred to JMRC’s account that will be used for expansion of projects,” said a JMRC official.
Sources said the fund would be created soon and the Urban Development and Housing (UDH) department will issue a notification after examination the nitty-gritty. The fund will be collected under three heads – levying entry tax on heavy vehicles, selling land and providing premium floor area ratio (FAR) along the metro corridor.
“The government is hesitant to levy entry tax on heavy vehicles. The proposal is being considered again. Once approval is given, a notification will be released and a committee will be constituted to monitor the funds.” To increase non-fare revenue, the JMRC is also mulling a proposal to lease out land. As per the (JMRC) assessment, the project is staring at an annual operational loss of Rs 41 crore for the next five years.
The loss is calculated at 60% of the ridership. The amount will rise up to Rs 71 crore a year if the loss is calculated at 20% ridership. As phase IB corridor is delayed and no earning has started yet it would be also a challenge to repay the Rs 969-crore loan taken from the Asian Development Bank (ADB). The state government’s instalment will start from June 2021.
For example, even if JMRC receives 60% ridership in 2020-2021, annual losses for operational purposes will be Rs 29 crore. “The route is very short and not feasible. Serious efforts are required to bridge the gap between operational cost and expenses,” added sources.