Lucknow Metro Crosses 10-Lakh Mark, Realty Along The Line Becomes Promising
As of November 15, 2017, that is merely 70 days into its operations, the Lucknow Metro has crossed the 10 lakh mark in terms of ridership. What makes it popular among daily commuters are the passenger-centric provisions, including free Wi-Fi for smart card users, water, toilets, disabled-friendly infrastructure, toll-free helplines, etc.
This month, the Lucknow Metro Rail Corporation (LMRC) was also conferred with a special award in the Best Urban Mass Transit category. The 8.5 km “Priority Corridor” of the North–South Corridor (Phase 1A) Project was completed and commissioned on September 5, 2017 in a record time of less than three years and this made it eligible for the award.
Flashback
The UP government had allocated Rs 233 crore for Lucknow Metro as the last installment from state government's coffer under equity. It had already paid over Rs 1,000 crore to the project in the past two years. Previously, the Ministry of Urban Development (UD) had sanctioned Rs 250 crore for the Lucknow Metro Rail project. This added assistance too followed a previous grant of Rs 300 crore in 2016. Besides, Union Home Minister Rajnath Singh had discussed the progress of the metro with Union Urban Development Minister M Venkaiah Naidu. All of this goes in to say that Lucknow metro thus saw a speedy progress, benefitting localities along its way as well as giving a much-awaited boost to transport infrastructure in the city.
As per sources, the 23-km Lucknow Metro was built at an estimated cost of Rs 6,928 crore. Of this, the central government provided Rs 1,003 crore as its share of equity, Rs 297 crore as Sub-ordinate Debt and Rs 3,500 crore as loan assistance. Uttar Pradesh had to mobilise the remaining Rs 2,128 crore as its share of equity and other means. The central government entered into a loan agreement with the European Investment Bank in March this year for providing a loan of Rs 3,500 crore to the project.
What stood as a concept in 2008 saw work in progress by September, 2014. By December 1, 2016, Chief Minister Akhilesh Yadav and SP supremo Mulayam Singh had flagged the metro at Transport Nagar Depot on an 8.5-km trial run till Charbagh station. This was phase 1A of the metro, to be operational by March 2017. By October, 2016, work on the Phase 1B commenced at Faizabad Road followed by the bhoomi poojan.
How does the market benefit?
The Metro comes as good news to prospective buyers. Ground reports suggest that despite the delay in the project, the buyers' market is optimistic. 2016 has proved to be a landmark year when it comes to regulatory reforms within real estate. Developments such as RERA, GST, demonetisation is expected to bring about a degree of momentum.
Besides, the city is branching out when it comes to growth with inquiries from those living in the vicinity of Lucknow. Meanwhile, developers have taken the cue and project launches and availability in 2016 was concentrated in areas such as Gomti Nagar, Sultanpur Road, Vrindavan Yojana, Sushant Golf City, Rae Bareli Road, Amar Shaheed Path, Gomti Nagar Extension Road, Faizabad Road, Jankipuram Vistar, Bijnor Road, Indira Nagar, Mohanlalganj, Sitapur Road and Kanpur Road among others. These are also some of the localities that registered a price appreciation over the past few quarters. Although demonetisation may have put conversions on hold, two quarters forward, there is hope for better days for city's real estate.
In fact, Lucknow required a push in terms of transport infrastructure to cope with the burgeoning population in the city. To keep resources in sync, the Master Plan 2021 too needed a revision as it had underestimated the growth prospects, confining limits to Shaheed Path or Telibagh on Rae Bareli Road. However, the new master plan would bring into its fold the fringe villages as well. With work progressing on the infrastructural front, Lucknow real estate may be in for good days ahead.