Monday, 6 June 2016

Kolkata East West Metro Project Faces 80% Cost Escalation

Kolkata: Delay in land acquisition and getting clearances, coupled with route realignment and foreign currency losses, has hit the East West Metro project hard. The ambitious project to connect the eastern part of Kolkata to the west across the Hooghly river over a 16.6 km stretch has seen a cost overrun of 80 percent to nearly Rs 9,000 crore in almost eight years, as against the original estimate of Rs 4,900 crore. The project was sanctioned in July 2008.

To be carried out in two phases, East West Metro will connect the IT hub of Sector V to Howrah, Kolkata's twin city, as per EXIN Time’s knowledge. Part of the project passes under the Hooghly river. It will have six elevated and six underground stations. Kolkata Metro Rail Corporation Ltd (KMRCL) is the implementing agency.
“The revised cost of the two-phase project now stands at Rs 8,996.96 crore. Route realignment and devaluation of the rupee to other foreign currencies are some reasons of this rising cost,” Satish Kumar, Managing Director, KMRCL, said.
Incidentally, East West Metro was slated to be operational by 2012. The first phase ran into problems over a 350-metre stretch in east Kolkata (called Duttabad) after slum-dwellers there refused to vacate the land. The issue has now been resolved.
According to Kumar, the first phase of the project connecting a 9.4-km stretch from Sector V to Central Kolkata is now scheduled to be completed by June, 2018. Over 50 percent of the work is completed. “There is some probability of us completing the first phase before time,” he added. The second phase, where just six per cent of the work has been completed, is expected to be operational by August 2019. This stretch was dogged by major problems.
The route was said to be running close to Raj Bhavan and other heritage buildings. It was also passing through the busy Central Business District area and hence construction there was a problem. This necessitated a route realignment; and an additional cost burden of approximately Rs 800 crore.



No comments:

Post a Comment