Home » Buzzing » AAP Government approves Rs 1,546 Crore interest-free loan to DMRC
Last updated: February 27, 2016 at 18:32 pm

AAP Government approves Rs 1,546 Crore interest-free loan to DMRC

Delhi’s beloved lifeline, the Delhi Metro, is expanding and Phase IV of the expansion project is expected to be completed by 2021. Phase III is supposed to be complete by the end of 2016 by DMRC, with major lines running through the ever-busy ring roads in Delhi.

Phase IV will focus at extending the existing lines to every nook and corner of Delhi, while adding 75 stations on its route. Delhi Metro Rail Corporation(DMRC) projects would always get completed on time till Phase II, but Phase III saw some hurdles due to land acquisition issues.

The Delhi Government, led by the Aam Aadmi Party(AAP), has decided to aid DMRC with a Rs 1,546 Crore interest-free loan, to speed up the development processes.

Currently, any purchase by DMRC has to undergo a Value Added Tax(VAT) scrutiny to be paid to the city government, which adds to the initial budget allotted to DMRC. However, the amount is later reimbursed when validated against the purchases.

The loan will be provided in three installments; Rs 646 Crore in 2015-2016, Rs 450 Crore in 2016-2017 and Rs 450 Crore in 2017-2018, which have been probably decided by the prioritized needs of the DMRC.

Gopal Rai, Delhi Transport Minister, said, “We used to reimburse the VAT amount paid by the DMRC, but the process would consume more time and often cause delay to projects. For instance, the government had reimbursed the VAT amount, which was to be paid in 2010 to Metro, in 2014. As per the new rule, we will extend interest-free loan in advance which the Metro used to give to the government in forms of VAT.” Arvind Kejriwal, Chief Minister of Delhi, was also present when the decision was made on the relaxed rule.

DMRC is owned equally by the Government of Delhi and Government of India. It has received accolades from everyone around the world for being punctual, efficient and comfortable to the commuters in Delhi-NCR. Phase IV is expected to reduce the traffic jams on arterial roads and interconnect different stations on the lines to shorten travel times for commuters.

Such excellent initiatives are welcome by everyone, which will ensure the plans are completed on time and no disruption is caused to the work flow.

Various efforts have been undertaken by DMRC in the past to ease the commute for residents in Delhi:

Delhi Metro Transforms Into Pickup Hubs For Ecommerce Portals; 10 Stations Designated As Last Mile Delivery Points

Soon, Paytm Wallet Payments Allowed For Delhi Metro Rides #OfflinePush

Can Delhi Metro Provide The Next Big Breakthrough In Generating Wind Energy?

Delhi Metro Will Provide WiFi For All Passengers; Invite Bids From Mobile Operators

"AAP Government approves Rs 1,546 Crore interest-free loan to DMRC", 5 out of 5 based on 1 ratings.
RELATED:  Cashless Initiative at 10 Metro Stations Put on Hold; Arvind Kejriwal Requests Enquiry into the Tie-Up with Paytm!
Indian Startup Funding Investment Chart List 2016

Check out our Youtube Channel!

Indians Downloaded 6 Billion Apps in 2016; Beat USA in App Downloads!

India is becoming an important destination for Google, and this has once again been proven by the do…

Jio Witnesses Data Speed Increase by 2X, Now Averages 9.9 Mbps

There is a good news for all Jio subscribers. According to TRAI MySpeed portal, Jio speeds have incr…

Daily Tech Wrap #1: Uber Fare Rise, Nokia 6 Launch, Sub-2k Smartphone, Aadhaar Numbers & More...

We are starting a new daily Tech Wrap series that bring you the most happening stories of the day in…

BHIM Payments App Sets Download Records, But the App Has Many Issues!

BHIM or Bharat Interface for Money was launched by Government on 30th December 2016, and within 5 da…

Subscribe to Our Youtube Channel

who's online