Home » UT govt takes steps for Rs 109 bn metro rail project

UT govt takes steps for Rs 109 bn metro rail project

UT govt takes steps for Rs 109 bn metro rail project
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The UT administration of Chandigarh is taking steps to implement the 37.57-km metro rail corridor project covering Chandigarh, Panchkula and SAS Nagar.

The project, which is estimated to cost Rs 10,900 crore, would be implemented through a special purpose vehicle (SPV). The cost of the project would be shared between the centre, UT administration and governments of Punjab and Haryana.

An SPV is a limited company that is formed to meet a specific objective. UT administration and governments of Punjab and Haryana are holding discussion on setting up the SPV. The three stakeholders will nominate nodal officers and discuss the formation of a core team for the project.

The decision to form an SPV was taken in a recent meeting under the Union ministry of urban development (MoUD).

An SPV can be registered under the Companies Act as a public sector body, either wholly owned by the centre or with equity participation from the state governments.

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