Swargate-Katraj Metro Extension Project Gains Momentum; Center to invest in the project through equity share, not grant
Pune: The 5.5 km fully-underground metro line from Swargate to Katraj will cost ₹2,954 crore. Maharashtra government has approved this project, however the central government has decided to participate in the project through an equity shares model rather than providing a grant. With this, the Swargate to Katraj metro project has moved a step closer to reality.
The state government has approved the Swargate to Katraj metro project that will cost ₹2954.75 crore. The length of this project is 5.464 km across three stations. The project, managed by the Maharashtra Metro Rail Corporation Ltd. (Maha-Metro), will be fully underground.
Initially on May 12, 2022, it was decided to approve an elevated metro line costing ₹3668.04 crore. The project received cabinet approval on April 20, 2022. On January 18, 2024, the Public Investment Board (PIB) recommended a grant model for the project, but the central government on August 5, 2024, decided to participate through equity shares.
The financial participation plan includes a ₹300.63 crore subsidy from the central government and ₹97.83 crore share from the state government. Both governments will provide interest-free loans: ₹115.52 crore each for 50% of the central government tax (CGST), and the state government will provide ₹206.58 crore for state government taxes and duties (SGST). Additionally, the Pune Municipal Corporation (PMC) will grant ₹181.21 crore for land acquisition, rehabilitation, and interest during construction.
