For regional connectivity, UP gives ₹900cr to RRTS
BUDGET 2020-21 The new funding comes close on the heels of a budgetary allocation of ₹2,487 crore by the Centre for RRTS project, which is estimated to cost about ₹30,274 crore
GHAZIABAD: In a major boost to regional connectivity in the national capital region, the Uttar Pradesh government in its fourth budget approved a provision of ₹900 crore for the Regional Rapid Transit System (RRTS) project. The move comes after the recent allocation of ₹2,487 crore by the Centre for the project in the Union Budget announced on February 1.
The allocation of ₹900 crore by the UP government was announced by state finance minister Suresh Khanna. The state government on Tuesday allotted a total of ₹5,12,860 crore for the state for financial year 2020-21. This happens to be the biggest ever state budget including budget allocations for Jewar airport and metro project, among others.
“The allocation is in line with the government’s commitment to providing better regional connectivity in the NCR. Construction works for different aspects under the RRTS project have started and we are striving to meet deadlines,” said Sudhir Sharma, chief public relations officer the NCR Transport Corporation (NCRTC) which is taking up the RRTS project.
The NCRTC is mandated to design, construct, finance, operate and maintain the RRTS in the region while the works are under the administrative control of the Union ministry of housing and urban affairs.
The entire RRTS project is pegged at ₹30,274 crore. It aims to provide a high-speed rail network between Delhi, Ghaziabad and Meerut with trains achieving high speed of about 180 kilometre per hour.
For the funding of the massive project, the Centre, Delhi government and the Uttar Pradesh government will provide their tentative shares of about ₹5,634 crore, ₹908 crore and ₹4,700 crore, respectively, while the rest will be funded from external sources.
“On directions of the UP government, a study for value capture finance (VCF) was also conducted and is being studied at state government-level. The VCF has proposed different methods to generate revenues in order to meet the timely repayment of the loan which will be procured for the project,” said a source.
Earlier, in 2018-19 financial year, the RRTS project was allocated an initial budget of ₹100 crore in the Union Budget while the Union Budget estimate of 2019-20 chalked out ₹974 crore and the revised estimates provided ₹824 crore to NCRTC. For 2020-21, the Central government provided ₹2,487 crore.
Last year in February, the UP government had provided a budget of ₹400 crore for the same.
Prime Minister Narendra Modi on March 8, 2019 had laid the foundation stone for the 82kmlong RRTS project. The NCRTC has already started the work for a 17km-long priority section in Ghaziabad between Sahibabad and Duhai. The stretch is scheduled to commence operations in March 2023 while the entire 82km-long stretch has a deadline of March 2025.