The national capital region – or NCR, which includes Delhi and a large swathe of areas in neighbouring states – has reasons to smile if this plan comes through. The government’s plans to make a regional rapid transport system (RRTS) corridor in the region is expected to bring about development as well as promote NCR as a choice of residence with special focus to promote better job and livelihood opportunities among women.

To start work on this, the constituent states of the NCR, the national capital region planning board (NCRPB) and the railways and urban development ministries on Thursday signed a memorandum and articles of association to set up a new shell company called national capital region transport corporation (NCRTC). The company will take regional rapid transport system (RRTS) and multi-modal transport system in NCR, it was announced.

“It is yet to be decided whether it will remain a shell company or will implement individual RRTS corridors through either separate special purpose vehicles (SPV) or public private partnership (PPP) mode,” urban development ministry secretary Sudhir Krishna said on Thursday.

He said the Centre has recently approved formation of this company, adding that seed capital of Rs 100 crore will be shared between the union government and the participating states at a 50:50 ratio. The share of the central government includes 22.5 percent for ministry of urban development, 5 percent for NCRPB, and another 22.5 percent for the railways ministry, which will not invest in individual corridors.

The share of the states is equally divided among them, Krishna said.

According to feasibility reports, the total cost of the three prioritised corridors – Delhi-Meerut, Delhi-Alwar and Delhi-Panipat – is estimated to be about Rs 72,000 crore. 

“Since financing requirements for the project is huge, it cannot be met from the gross budgetary resources of the central government or state governments,” Krishna said. “Various innovative mechanisms such as additional FAR within the influence zone of RRTS stations and capturing the benefits of additional FAR into the project cost, levy of impact fee to capture the increase land and property value from sale proceeds, enhancement of circle rates and property taxes are going to be adopted.”

He said besides borrowing from international financial institutions, the project will also involve domestic borrowings in a large manner.

Aiming for a planned development, it is essential to get comprehensive mobility plan of all towns and getting connected by the RRTS to achieve multi-modal integration with railways, Delhi Metro, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) and other feeder services, the urban development secretary said.

“Along with the mobility plan other infrastructure plans would follow,” he said. “It would be essential that the alignment of RRTS is notified in the masterplan so as to avoid problems at a later stage.”

Besides RRTS in Metro, the Centre is expected to fund about 10,000 buses for all towns and cities in the specified zone, irrespective of size, within the next few months.

“Work on the RRTS corridor needs to be taken up as quickly as possible to avoid time and cost overruns,” NCPRB member-secretary Naini Jayaseelan said.
Delhi Metro managing director Mangu Singh said, “All these three lines will have interchange with Metro lines. So DMRC’s coordination is very important.”
The company is expected to be registered soon.