The controversy surrounding Delhi Metro’s phase-IV refuses to die down. A fresh tussle is brewing between the Ministry of Housing and Urban Affairs (HUA) and the Delhi Government over it.

The HUA Ministry said certain financial conditions imposed by the Delhi Government have jeopardised the Metro phase IV projects, leading to substantial delay and inconvenience to people as conditions are contravention to the Metro phase III and Metro Rail Policy 2017 passed by Parliament. 

The project is under appraisal of independent agency as certain changes have been made by the State Government in the revised detailed project reports of six corridors.

Sources said the proposal cannot be passed with the financial conditions imposed by the Delhi Government.

Phase-IV was approved by the Delhi Government on December 21 after hanging fire for almost two years.

The two conditions imposed by the Delhi Government are: Operational losses will be equally shared by the Centre and the State, and that the Delhi Government will not bear any liability for external loan if the Delhi Metro Rail Corporation (DMRC) fails to pay back.

An official said the Delhi Government had also put a condition in its approval that it will not have any liability for loan provided by the Japan International Cooperation Agency to fund the project that is in violation of the Metro Rail Policy 2017 wherein operational losses are to be borne by the Delhi Government. 

Officials said the Metro Rail Policy 2017 is applicable to  all States and Union Territories and it cannot be  changed for the sake of the Delhi Government.

Sources said the Delhi Government in 2016 had not “conveyed financial commitments in their in-principle approval of the Phase-IV”. The DMRC on January 10 this year had submitted the Phase-IV detailed project report comprising six corridors with revised costs, sources said.

Meanwhile, the Delhi Government spokesperson countered the allegation, saying, the city Government has already cleared the project from its side and any delay that is now happening is from the Centre’s side.

“The Phase-IV project was cleared in December and we had made conditions quite clear. We will respond further as and when we receive any communication from the Centre,” the spokesperson said.

The Delhi Metro on January 24, 2017 had submitted the proposal without commitment of sharing of 50 per cent subordinate debt towards central taxes by the Delhi Government as it did not approve of it.

This was “contrary to the existing practice being followed for all 50:50 joint venture metro rail projects”, including earlier phases of the Delhi Metro,  the official  claimed.

The HUA officials recently had said it is examining the condition that the Centre equally share any operational loss with the AAP Government, while asserting that it was a State subject and that other States might raise similar demands.

Sources said demonetisation and implementation of Goods and Service Tax (GST) has helped the Delhi Government to reduce the cost of the Metro phase IV six corridors from Rs 55,000 crore to Rs 46,845 crore. Among the projects chosen under the Phase-IV are Rithala-Narela (21.73 km), Janakpuri West-R K Ashram (28.92 km), Mukundpur-Maujpur (12.54 km), Inderlok-Indraprastha (12.58 km), Tughlakabad-Aerocity (20.20 km), and Lajpat Nagar-Saket G-Block (7.96 km).