In view of the bitter experience with a private partner on the Airport Express Metro Line, which has been delayed significantly, the DMRC has shot down the planning commission's proposal to develop metro projects in 50 cities under a Public-Private Partnership (PPP) model.

The Delhi Metro Rail Corporation's (DMRC) reservations were expressed during a recent meeting with officials of the planning commission, where DMRC chairman and managing director E Sreedharan argued against implementation of such projects in a PPP mode, a source said.

According to sources, "Sreedharan had argued that it has not worked anywhere across the world and it will also not work in India and cited the example of Airport Express Metro Line, which was to be completed before Commonwealth Games and is still hanging fire."

The source said, "In the meeting, Sreedharan referred to an incident of a metro rail project in the UK, where a private player pulled out its equity and later, the government had to take over."

In its argument, the Plan panel said an equity investment of about Rs 1.6 lakh crore would be required to execute these projects in over 50 cities across India with a population of over one million.

Since funding all the projects would be a problem for the government, the Planning Commission had suggested roping in private companies to implement the projects in the PPP mode.

When this idea was discussed with DMRC to seek their expert comments on this, it was dumped right away by the corporation.

Representatives of the urban development ministry also said that PPP in metro rail projects has not been successful worldwide. They also rejected the panel's assertion that there was a need to set up metro rail projects in 50 cities.

The DMRC also said that a metro rail project in all cities with a population over one million is not viable and the benchmark population to qualify for such project should be raised to two million.

It also said the government should look into the comprehensive mobility plan (CMP) of a city before going ahead with a metro rail project.

With regard to the CMP, the government should look at the availability of other modes of transport that can be introduced with less investment, such as taxis, auto rickshaws and buses, it said.

Giving the example of a metro rail project in Chandigarh, the DMRC argued that the city does not need a metro rail, as the maximum distance from one place to other is not more than nine kilometres. .