Swargate Katraj Metro Project In Pune: Centre To Participate Through Equity Share Not Grant

The state government has approved the revised financial plan for the Swargate to Katraj metro project, a 5.5 km fully-underground line set to cost ₹2,954 crore. This development brings the project a step closer to reality. 

Initially, an elevated line costing ₹3,668.04 crore was planned and approved by the cabinet on April 20, 2022. However, on January 18, 2024, the Public Investment Board (PIB) recommended a grant model. Instead, the central government has decided to participate through an equity shares model as of August 5, 2024.

The financial plan includes a ₹300.63 crore subsidy from the central government and ₹97.83 crore from the state government. Both governments will provide interest-free loans: ₹115.52 crore each for 50% of the central government tax (CGST), and the state government will provide ₹206.58 crore for state taxes and duties (SGST). Additionally, the Pune Municipal Corporation (PMC) will grant ₹181.21 crore for land acquisition, rehabilitation, and interest during construction.

Shravan Hardikar, Maha-Metro’s managing director, noted that while the initial grant model could have led to a change in ownership, the equity model ensures Maha-Metro retains control. The state government will now send the approved plan to the central government for final confirmation.

The revised plan has been approved by the state government, with the central government requesting an update based on the equity shares model. This final decision was backed by the planning and finance departments on August 7, 2024. Vijay Chaudhary, the state’s urban development department joint secretary, has approved the project under the equity shares model.