Brief Note on Jaipur Metro Rail Project

Jaipur Metro Rail Project has been planned keeping in view the
urban transport demands of the city for the next many decades.
Planned to provide an affordable and reliable system of public
transport, the project intends to spur economic development of
the city while preserving its rich heritage and culture. Thus,
Jaipur Metro Rail Project is a significant step in making Jaipur a
world class city.

As SPV for implementing the project, Jaipur Metro Rail

Corporation was created in January, 2010 as a wholly
owned company of the State Government, but now, after the
recent clearance given by Ministry of Urban Development,
Government of India on 22.11.2013, it is in the process of being
converted into a JV of the Central Government and the
Government of Rajasthan.

The city of Jaipur had a population of 31 lakh in 2011, which is

projected to grow to 81 lakh in 2031. Based on the traffic and
transportation studies and comprehensive mobility plan by M/s.
Wilbur Smith and the DPR prepared by DMRC, Jaipur Metro Rail
Project is planned to come up in phases, as indicated below:-

Phase Length (kms) Cost (Rs. in crore)

1A 9.718 2023
1B 2.349 1126
Total Phase I 12.067 3149
Phase II 23.77 9866

The salient features of Phase I, with details of IA and IB, are shown
in the following table:

Description Phase-1A Phase-1B Total

Phase-1
From-To Mansarovar Chandpole to Mansarovar
to Chandpole Badi to Badi
Chaupar Chaupar
Elevated Route 9.278 Nil 9.278
Length (in Kms.)
Under Ground 0.440 2.349 2.789
Route Length (in
Kms.)
Total Route 9.718 2.349 12.067
Page 1 of 7
 Length(in Kms.)
Elevated Stations 8 Nil 8
Under Ground 1 2 3
Stations
Total Stations 9 2 11
Total Capital Cost 2023 1126 3149
(in crores)
Financial Internal - - 8.24%
Rate of Return
(FIRR)
No of Coaches 32 8 40
required
Proposed Date of End of August, March, 2018 -
Commercial 2014
Operation
Mode of execution EPC Mode EPC Mode -

Executing Agency DMRC Continental -

Engineering
Corporation
( of Taiwan)

For effective execution of the project in its initial stages, the services
for construction as well as project consultancy were taken from
DMRC. The total work of Phase-I was divided into two parts; Phase-
IA and Phase-IB. Phase-IA from Mansarovar to Chandpole covering
a length of 9.718 km. (out of total 12.067 km.) was awarded to
DMRC on deposit terms including the technical and management
consultancy. Major part of Phase-IA has been completed and trial
runs are in progress. Phase-IB covering a length of 2.349 kms.
comprising underground stretch from Chandpole to Badi Chaupar
had also been taken up on EPC mode but will be implemented
directly by Jaipur Metro Rail Corporation (JMRC), with DMRC
playing the role of General Consultants (GC). The work on Phase-IA
is proposed to be completed by the end of August, 2014 and Phase-
IB is expected to be completed by March, 2018. The complete O&M
of Phase-IA is proposed to be taken up by JMRC on its own. Hand-
holding support is being taken fromDMRC in O&M of Phase- IA for
the initial period of one year.

Page 2 of 7
MoUD, GoI has conveyed the approval of the Government of India
for the implementation of Jaipur Metro Rail Project Phase-I, at a
completion cost of Rs. 3149 crore (including escalation cost of 5%
every year after 2011) by Jaipur Metro Rail Corporation Ltd. with
contribution of Government of India in the form of equity and
subordinate debt as per the details given as under:-

Source of Funding Amount of In

Contribution
(Rs. in Crores) (%)
Equity by GoI 472.50 15 %
Subordinate Debt by GoI 157.50
(50% of the Central Taxes and 5%
Duties)
Sub Total (GoI) : 630.00 20 %
Equity by GoR 472.50 15 %
Subordinate Debt by GoR 157.50
(50% of the Central Taxes and
Duties)
AdditionalSubordinate Debt by 108.00 34.23 %
GoR for land cost other than
Govt.Land.
Additional Debt by GoR 812.00
Sub Total (GoR) : 1550.00 49.23 %
Loan from ADB 969.00 30.77 %
Total Cost 3149.00 100 %

It may be mentioned here that FIRR of the project is 8.24% which is

the highest of all metro rail projects. This became possible because
the State Government has committed to provide an additional long
term interest free debt of Rs. 812 crore to raise its total commitment
to Rs. 1550 crore. The remaining amount of Rs. 969 crore is to be
funded as long term loan from ADB for which Loan Agreement and
Project Agreement has been signed on 29.05.2014. Interest burden,
as well as foreign currency exchange rate fluctuation shall be
covered by GoR. Any cost escalation due to changes in the
statutory central duties/levies shall be shared equally between the
project promoters. Any other cost escalation including price
escalation, escalation due to exchange rate variation, change in
scope or avoidable delay, etc., within and beyond the approved time
cycle, shall be entirely borne by the Government of Rajasthan. The
state/local taxes shall be entirely waived/reimbursed by the State
Government. The operational losses are also to be borne by the SPV
or the State Government. GoI support shall be ring fenced to 20%
of the project cost.
Page 3 of 7
Government of Rajasthan has also taken some other steps to
strengthen the project finances. To support the payment of interest
and repayment obligations and O&M deficit, if any, the State
Government has decided and taken measures to have a regular
revenue stream through a Dedicated Metro Fund (DMF). Revenue
from premium FAR along the metro alignment would directly accrue
to Dedicated Metro Fund. A part of revenues from premium FAR on
routes away from Metro corridor, presently accruing to JMC and
JDA, is also slated to be earmarked for DMF. The creation of
Dedicated Metro Fund has already been approved by the State
Government (State Cabinet order No. 132/2010). Sources of
funding to DMF are detailed as below:-

a) With Green Tax and surcharges on taxes on vehicles and

stamp duty already levied by the State Government, Rajasthan
Transport Infrastructure Development Fund (RTIDF) has been
created vide State Government order no. 14214 dated
29.02.2012 and 25% from proceeds of this fund will be
available to the DMF. Revenue generated by RTIDF in the year
2011-12 is Rs. 172 crore and in the year 2012-13 it is Rs. 214
crore.

b) Revenue from property development along and beyond the

Metro Corridor (Government of Rajasthan has resolved to
transfer a land bank of 50 hectares to JMRC for property
development. Out of this, 23.69 hectares of land for property
development has already been transferred to JMRC and it is
being planned for appropriate development).

c) Revenue from advertisements, parking and other related

sources.

d) Betterment levy on premium FAR has already been levied for

entire Jaipur City and additional levy along the corridor is
under finalization. Meanwhile, it has been decided that 100%
revenue at existing rates from premium FAR on Metro Corridor
collected/to be collected by JDA shall be transferred to DMF
with effect from 1st April, 2011. 50% of revenue from premium
FAR in entire JDA region, other than the Metro Corridor, shall

Page 4 of 7
 also accrue to and is to be transferred to DMF with effect from
1st April, 2011.

e) 10% from all auction proceeds of its land by Jaipur

Development Authority and Rajasthan Housing Board.

f) Any other taxes/levies/fees/duties the State Government may

impose for the purpose.

The physical progress as on date is as under:-

Phase 1A

The work of Phase 1A was started in February, 2011. The civil

works are nearing completion. 40 Metro coaches have been
procured from BEML, Bangalore, out of which 36 coaches
have been received in Jaipur. Track and electrification works
have also been completed.Trial runs of Metro train are in
progress and commercial operations are likely to begin by the
end of August, 2014. Thus, the project stands substantially
completed.

Phase 1B

Though smaller in length, it is set to be the most important

phase of Jaipur Metro as it will be completely underground
and will take the Metro to the heart of heritage city of Jaipur.
This phase will mostly be financed by ADB.

Based on a international competitive bidding for civil works of

this phase, M/s. Continental Engineering Corporation (of
Taiwan) was selected as the executing agency for this phase.
Survey and soil testing works have been completed on the
ground. Pre Building Condition Survey of buildings along the
underground metro route is also completed. Two TBMs have
been mobilized and the TBM launching shaft is being
constructed.

Page 5 of 7
 Though there is no ASI protected monuments in the vicinity of
the project, an Environmental Impact Assessment study has
been completed with the assistance of ADB, so as to ensure
that no damage is caused to any other physical cultural
resources, including the state-protected monument of Hawa
Mahal, that fall within 100metres of this underground phase.

Special features of Jaipur Metro Rail Project:

1
1. With its Phase-IA getting completed in about 3 years
2
(February 2011 to August 2014), Jaipur Metro Rail Project
stands out as the fastest project implementation among all
Metro projects in the country and the rest of the democratic
world.

2. With its innovative land acquisition mechanism for Jaipur

Metro, the land acquisition has been very smooth and most
expeditious. The State Government has set up an Empowered
Settlement Committee which worked out mutually agreed
rehabilitation packages for each and every project affected
person.

3. Because of speedy land acquisition and project

implementation, there have been no time or cost over runs so
far and none are expected in future.

4. FIRR of the project is 8.24% which is the highest among all

Metros in the country. This has been possible because of the
innovative financing pattern of the project, wherein local
authorities like Jaipur Development Authority, Rajasthan
Housing Board and Rajasthan State Industrial Development &
Investment Corporation Ltd. have also contributed towards
State share and the State Government has agreed to bear the
interest burden on ADB loan, reducing the cost of capital to
zero.

5. Transit Oriented Development: Jaipur Metro is the first case

where 100% of the betterment levy on premium FAR to be
recovered by JDA along the Metro corridor will flow into
Dedicated Metro Fund (DMF) of Jaipur Metro, which will take

Page 6 of 7
 care of any operational deficit or shortfall in repayment
obligations. 10% of the entire proceeds from all land auctions
of Jaipur Development Authority and Rajasthan Housing
Board will also be coming into the Dedicated Metro Fund in
recognition of the value addition to its land bank caused by
Jaipur Metro.

6. In terms of planning, Jaipur Metro is set to become a good

example of multi-model integration, as it is connecting the
Railway Station, Inter-State Bus Terminal and the
International Airport with inter-change facilities; and
provisions being made for bycycles, cycle rickshaws, auto-
rickshaws and bus-bays in most Metro stations.

7. Civil structure of Jaipur Metro has many innovative and path

breaking features including a double-decked elevated corridor
for Metro and BRTS.

Page 7 of 7