DMRC asks the State to entrust the work on a turnkey basis and on deposit terms as a government initiative. Says JICA should be approached jointly for loans
Thiruvananthapuram (TVC): The Delhi Metro Rail Corporation (DMRC) has informed the State that the government and the DMRC should jointly approach the Japan International Cooperation Agency (JICA) to fund the Light Metro projects in Thiruvananthapuram and Kozhikode.
The DMRC has also pointed out to the government the need to complete the formalities to facilitate the visit of an appraisal team from JICA without delay as the Japanese STEP (Special Terms for Economic Partnership) loan needs to be concluded in six months. The DMRC has given a seven-point “way forward” for the Rs.6728-crore project to Kerala Rapid Transit Corporation Ltd (KTCL), the Special Purpose Vehicle set up to execute the project, to expedite the kick-off of the Phase I MRTS in 35.12 km in the two cities.
The DMRC has also asked the government to suggest to the Department of Economic Affairs to avail STEP loan with relaxed conditions to fund the MRTS.
The Detailed Project Report (DPR), after getting the clearance of the Cabinet, should be forwarded to the Union government for “in principle approval”.
With JICA providing STEP loan, the State and Centre will have to meet only 10 per cent of the project cost plus the taxes and land cost. The State and Union governments’ share will then come down to Rs.569 crore as equity and Rs.350 crore as subordinate debt (taxes), totalling Rs.919 crore. The State will have to find an additional Rs.341 crore for land in the two cities. The State has been told that the work should be entrusted on a turnkey basis.
The DMRC has also suggested including flyovers at Sreekaryam, Ulloor, Pattom and Thampanoor junctions as part of the project. The total cost of the flyovers is estimated to be Rs.200 crore without land cost. The DMRC has pointed out that making the flyovers part of the Light Metro project will enable JICA funding for them too.