Pay Rs 3,000 cr annually to cancel Metro fare hike: Centre to Kejriwal


New Delhi, Oct 7 (IANS): The central government has informed Delhi Chief Minister Arvind Kejriwal that it cannot put on hold the proposed Metro fare hike unless his government gives over Rs 3,000 crore annually to DMRC.

Minister of State for Housing and Urban Affairs Hardeep Singh Puri has told Kejriwal in a letter that the Metro Act does not allow the central government to put on hold the fare hike.

The AAP government has opposed the fare hike proposed from October 10. It has locked horns with the Delhi Metro Rail Corp (DMRC) over the impending second hike this year, following the recommendation of the fourth Fare Fixation Committee (FFC).

Puri said setting up a fresh FFC could be considered if the Delhi government agrees to pay up over Rs 3,000 crore annually to DMRC.

The DMRC was formed in 1995 with equal equity participation of the central government and the government of National Capital Territory of Delhi.

Puri's letter dated October 6 was a response to a letter from Kejriwal on September 29 asking the central government to put the hike on hold.

"Your suggestion that this Ministry direct that the fare increase be kept on hold overlooks the fact the central government does not have any such authority. Tampering with the recommendations of FFC is legally untenable," Puri said in his letter.

Puri noted that the alternative to fare hike was to provide DMRC yearly grants-in-aid for the next five years: Rs 3,040 crore, Rs 3,616 crore, Rs 3,318 crore, Rs 3,150 crore and Rs 2,980 crore respectively.

Rebutting the Delhi government's claim that FFC had recommended that the two fare hikes should have a gap of one year, Puri said Kejriwal's statements vis-a-vis the FFC were both "misleading and factually incorrect".

Puri said the people of Delhi wanted efficient, reliable and punctual Metro services and added that DMRC should be allowed to function as an autonomous company in the best interest of the citizens.

Puri said the Phase-IV of Delhi Metro was running behind schedule by two-and-a-half-years due to decisions taken by the Delhi government.

Responding to Puri's letter, a Delhi government spokesman said: "Why is the Centre not putting on hold DMRC fare hike? Because it is not the khakhra of poll-bound Gujarat!!"

He added that Puri's arguments meant that the people of Delhi should suffer as DMRC didn't rationalize its fares for eight long years.

Last week, Kejriwal asked Delhi Transport Minister Kailash Gahlot to find a way to stop the "anti-people" fare hike.

The DMRC defended its decision by saying its input costs had gone up over the years and the increase was at par with Metro rails in other cities.

The Delhi assembly will meet on Monday to discuss the proposed hike.

  

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Comment on this article

  • leslie, udupi

    Sun, Oct 08 2017

    High handedness everywhere...
    If questioned PM will say it is department matter...
    People are watching Godra King....
    Your second innings will end soon....
    Blood on your hands will never be washed by the best of soaps...

    DisAgree [4] Agree [8] Reply Report Abuse

  • SMR, Karkala

    Sat, Oct 07 2017

    DMRC is owned equally by the Delhi government and the Government of India.

    As of March 2016, total debt stood at ₹291.5 billion (US$4.5 billion), while equity capital was ₹239.9 billion (US$3.7 billion). Cost of the debt is 0% for Govt of India and Delhi government loans, and between 0.01% and 2.3% for Japan International Cooperation Agency loans. Of the equity capital as of 31 March 2016, ₹193.1 billion (US$3.0 billion) is paid-up capital and rest is reserves and surplus.

    India could have saved as much as $3.2 billion on construction of the Mumbai-Ahmedabad bullet train system if it had invited bids instead of awarding the project to Japan on a nomination basis. At least, that is what emerges from a cost comparison with similar high-speed rail (HSR) projects built in other countries in recent years.
    China and Thailand agreed that the first phase of a planned high-speed railway project will cost 179 billion baht ($5.15 billion), Thailand’s transport minister said, with both countries calling for closer ties following rocky negotiations.
    The 873 km (542 miles) rail line will link Thailand’s border with Laos to the ports and industrial zones in Thailand’s east.
    At a time when China was eyeing on receiving more international orders for building bullet train networks, two of them being in India -- Ahmedabad to Mumbai and New Delhi to Chennai the Narendra Modi-led NDA government decided to give the Ahmedabad-Mumbai project to Japan without bidding.
    "Thailand approves 3000 KM Chinese bullet train from Bangkok to China for $5.5B. India approves 500KM train for $17B!"
    Now one workout simple mathematics $3.2 billion(without bidding) divided by the Rs3000 crores asked by the central government. This saving alone would have cleared the debt of Delhi Metro and entire track changes or overbridges which new Railway Minister wanted to build.
    Why BJP didn't go for bidding of 'Bullet train'?
    If Center is equal partner in Delhi Metro why don't it spend half of Rs3000?
    Jai Hind

    DisAgree [4] Agree [20] Reply Report Abuse

  • Karan, Delhi

    Sat, Oct 07 2017

    Shri Arvind Kejriwal and his AAP party is the blessing on delhites. All delhites love this AAP more than any party since independent India. No matter what we will not let go off this govt.

    DisAgree [6] Agree [27] Reply Report Abuse

  • Jeevan, Mangalore

    Sat, Oct 07 2017

    Petrol should be made 500 rupee per litre, only rich people can drive.

    Less pollution,

    DisAgree [24] Agree [9] Reply Report Abuse

  • Dinesh Poojary, Aagumbay/Mysore

    Sun, Oct 08 2017

    So Jeevan you will use bullock cart is it? Good going Jeevan. So the saved and not exported cows will be used for jeevan's bullock cart! Aray wah, Kya baath hey jeevan!!!!!!!!!!!!!

    DisAgree [2] Agree [13] Reply Report Abuse

  • mahesh, Mangalore

    Sat, Oct 07 2017

    Kejriwal should give 3000 crore and stop the price increase,if he cares about the "poor"
    But Delhi govt has one of the worse finances in the country.

    DisAgree [28] Agree [10] Reply Report Abuse

  • NITIN, mulki

    Sat, Oct 07 2017

    that means central Govt is not capable to manage anything without increasing its price. The day they have come power they have been increasing the price for each and everything.

    DisAgree [5] Agree [23] Reply Report Abuse

  • pnto, mglr

    Sat, Oct 07 2017

    give Mr. Kegriwal to run the govt at the center then you see how things move he will purifu the system. where all the crores colected as tax going????

    DisAgree [7] Agree [38] Reply Report Abuse

  • mahesh, Mangalore

    Sat, Oct 07 2017

    Kejriwal is going to be only in Delhi.
    As usual Kejriwal speaks without understanding facts.

    DisAgree [33] Agree [7] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, Oct 07 2017

    We do not want Ambani & Adani to pocket this Money ...

    DisAgree [7] Agree [36] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Sat, Oct 07 2017

    Disgusting centre. Let Delhi metro come under Delhi Govt first.

    DisAgree [6] Agree [24] Reply Report Abuse

  • NAGESH NAYAK, Mangalore

    Sat, Oct 07 2017

    THESE KEJRI AND SIDDHU, NOT GIVING MONEY TO MODIJI. THATS WHY GEP IS DOWN.

    PSEUDOS MESSED GDP

    DisAgree [49] Agree [9] Reply Report Abuse

  • Harish Hegde, Mangalore/Aramco (Saudi Arabia)

    Sun, Oct 08 2017

    are you still alive?

    DisAgree Agree [10] Reply Report Abuse

  • Amith, USA

    Sun, Oct 08 2017

    For some time went to KAILASH for obtaining more GYAN!!!! Now he become Gyaneshwar Nalayak!!!!!!

    DisAgree Agree [4] Reply Report Abuse

  • Ravi C, Mangalore

    Sat, Oct 07 2017

    And that 3000 crores can be used for the party development.. Import people from other states and go for some rally..

    DisAgree [7] Agree [40] Reply Report Abuse


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Title: Pay Rs 3,000 cr annually to cancel Metro fare hike: Centre to Kejriwal



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