Set up sister firm for consultancy: MoUD to Delhi Metro

Jan 29 2013, 11:01 IST
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SummaryUrban Development Ministry doesn’t want consultancy to hamper DMRC’s ongoing projects.

Urban Development Ministry doesn’t want consultancy to hamper DMRC’s ongoing projects.

The Ministry of Urban Development (MoUD) has instructed the Delhi Metro Rail Corporation (DMRC) to set up a separate company to provide consultancy services. The DMRC offers consultancy services to several Metro projects in the country and abroad.

Sources said the ministry has issued directions to form a subsidiary firm of the DMRC so that the construction of the proposed Metro corridors in the city are not hampered by consultancy services. “The DMRC’s presence as a consultant abroad and in the country has been expanding. But the projects like Phase III and Phase III extension are seen to be facing several hurdles. It has been conveyed that the priority should be the sanctioned Metro projects in the city and a separate subsidiary firm of DMRC should be formed to carry out consultancy functions,” a senior official said. The MoUD fears that offering consultancy services under the DMRC may affect the functioning of officials.

Officials said the decision was taken by the MoUD after the Delhi Metro was appointed as a consultant in the Kochi Metro Rail Project. Since the Kerala government insisted on having DMRC as a consultant, the Centre allowed DMRC to serve as a project consultant and prepare a detailed project report for the Kochi Metro. Delhi Metro is also acting as the consultant for all major Metro projects in the country including those in Mumbai, Chennai, Bengaluru and Kolkata. It is also carrying out the construction work of a 9.25-km Metro corridor in Jaipur.

The DMRC has also been awarded the work of `Management Consulting Services’ for the first phase of the 15.7-km Jakarta Mass Rapid Transit System in Indonesia. Officials also claim that the DMRC is rendering business consultancy to bag similar projects in various upcoming Metro projects of Bangladesh, Sri Lanka and Israel.

“The objective is to provide consultancy services without infringing in the main functioning of Delhi Metro. The sister company of the DMRC will also be registered under Companies Act 1956. The modalities of setting up a subsidiary firm are being worked out,” the official said.

The DMRC has a business development department, which is in charge of the consultancy services of the corporation. Among the DMRC’s under-construction Metro projects in the capital is the Phase III Metro, which aims to connect two major arterial roads — Ring Road and Outer Ring Road.

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