PPP model not suitable for metro rails, says Sreedharan
Thursday, 21 October 2010, 04:15 IST
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Mumbai: Public-Private-Partnership (PPP) models works well only in projects such as airports, ports and highways and not metro rail as the latter offers low returns while being highly capital intensive, a senior infra sector expert said. "Metro projects are very expensive and are social. They are not expected to make profits. Private players will come in only when there is profit," Delhi Metro Rail Corporation''s Managing Director E Sreedharan told reporters on the sidelines of a function here. Only the government should undertake metro projects, Sreedharan said, adding both the Central and State governments should jointly undertake such projects. "Personally, I do not favour the PPP model for metro projects. Ideally, it should be a 50:50 participation from Central and state governments. Therefore, no particular government can dominate," he said. Sreedharan, who is credited with completing the first two phases of the Delhi Metro in record time, said that the Mumbai metro One, being undertaken by the Anil Ambani group on the BOT model is much beyond schedule. "Currently, L&T and the Anil Dhirubhai Ambani Group are building metros. We are yet to see how they will perform," he said. .
Source: PTI
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