Tk233cr addl fund sought to cover CD VAT

The Road Transport and Highways Division sought an additional Tk 233 crore allocation to cover CD VAT for importing metro train sets, depot equipment, and electrical and mechanical items under the Dhaka Mass Transit Development Project (MRT Line-6).

The division recently sent an application to the Planning Division seeking the additional fund under the Revised Annual Development Programme (RADP) allocation of FY22, a Planning Commission senior official told The Business Post.

To implement this fast track project, the government has allocated Tk 4,200 crore in this fiscal year for the MRT-6 line of the metro rail, the official added.

The Planning Commission is working on preparing the RADP for FY22, which will get approval at a National Economic Council (NEC) meeting – chaired by Prime Minister Sheikh Hasina – in the coming days.

On the matter, Secretary of Planning Division Pradip Ranjan Chakraborty said, “We have received an application from the Road Transport and Highways Division seeking additional funds with the RADP to cover CD VAT for importing metro train sets and other equipment.

The commission’s Project Evaluation Committee (PEC) has agreed to provide the additional fund, says the application.

Implementing agency Dhaka Mass Transit Company Ltd (DMTCL) has plans to procure 24 sets of metro trains with a cost of Tk 4,257 crore from Japan, 10 sets of metro trains have already arrived in the country.

The overall progress of the country’s first Metro Rail is currently 75.39 per cent. The construction from Uttara to Agargaon portion has progressed 90.42 per cent, and Agargaon to Motijheel portion 74.42 per cent.

The progress of Electrical and Mechanical Systems and Rolling Stock (Rail Coach), and Depot Equipment Procurement Progress is 73.79 per cent.

Of total cost Tk 22,000 crore, Japan International Cooperation Agency (JICA) will provide Tk 16,595 crore, while the rest of the fund will come from the government exchequer.

Once the project is implemented, 20.1 km of electricity-powered light rail tracks will be able to serve more than 60,000 passengers per hour from both sides.