Will the Mumbai Metro rail project, currently underway in the city, be financed by the private sector or the state government? This is the question which is on the minds of most people involved with the Metro project.The recent statements of E Shreedharan, managing director of Delhi Metro Rail Corporation (DMRC), expressing caution about the private sector building major Metro rail projects, has stirred a debate among senior bureaucrats about the need for government implementation of Metro rail projects. The DMRC is a consultant to several Metro projects in the country, including the Mumbai Metro and has considerable say in the planning process of these projects.Transport circles point out that there are a total of nine Metro rail lines planned for Mumbai, and unless a firm decision on this issue is taken, it might lead to a delay in the implementation of some of them.In Mumbai, the the first two lines of the Mumbai Metro are being built on the public private parternership (PPP) model. The Rs 2,356 crore first line from Versova to Ghatkopar is already underway while the second, from Charkop to Mankhurd, to cost Rs 6,192 crore is being finalised. Under the PPP system, a private company builds the Metro and operates it for 30 years after which it hands it back to the government. The Versova-Ghatkopar line is being built by Mumbai Metro One, a special purpose vehicle which is owned by Reliance Energy Limited, Veolia, a French multinational and the Mumbai Metropolitan Region Development Authority.MMRDA commissioner Ratnakar Gaikwad has in the past expressed himself in favour of the government undertaking such projects. His views are shared by many top officials in Mantralaya.However, the PPP model has a strong supporter in the private sector and is being encouraged by the World Bank whose officials point out several PPP successes around the globe.Senior officials in the Mumbai Metro project said Shreedharan has always been against the private sector undertaking metro projects and his views are now gaining ground in a section of the bureaucracy both at the Centre and state level.Add to this the feeling in government circles that in most countries around the world, large transport projects are undertaken by the governments concerned. There is also the feeling that the private sector will not be willing to take up large projects like the Colaba-Bandra Metro line which will cost Rs 12,000 crore. The next few months will show which way the projects will go—private or public.
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