Union Budget 2018: Nearly 20% reduction in allocation for metro projects across India

The Centre has kept an outlay of Rs 14,264.60 crore for metro projects across the country in the Union Budget for 2018-19, a reduction of nearly 20 per cent from the allocation in the previous budget.

Presenting the budget today, Finance Minister Arun Jaitley said infrastructure is the “growth driver” of the economy and urbanisation is the government’s “opportunity and priority”. However, the budget document did not provide a break-up for the individual projects like those being executed by the Delhi Metro Rail Corporation (DMRC). The budget also proposed a grant of Rs 50 crore to the Delhi Metro for its expansion into NCR areas. The allocation for metro projects for 2017-18 was Rs 17,810 crore and for expansion into NCR areas, the DMRC was granted Rs 150 crore.

This year, the pass through assistance such that loan amount provided by external agencies, has been pegged at Rs 10,373 crore while the equity investment figure stands at Rs 2,341 crore. According to the DMRC, the sanctioned cost for the Phase III project, which includes extension to Haryana and Uttar Pradesh, stands at Rs 44,816.91 crore. Union Minister Piyush Goyal on Thursday welcomed the Budget 2018, describing it as a “visionary” …read more