DMRC gets first tranche of INR 9 Cr. towards Consultancy Fee for abandoned Monorail project

कोची Kochi: Delhi Metro Rail Corporation, the consultant for monorail projects in the state, has received Rs.9 crore, the first tranche of the consultancy fee for the project now abandoned by the state government. According to the agreement, the state government had to pay DMRC Rs 179 cr or three per cent of the estimated project cost of Rs 5,990 cr as consultancy fees, a source said.

The government was scheduled to pay the consultancy fee every three months from the date of commencement of the agreement, the source added. Although the agreement was signed in June 2013, the government has so far paid only one quarterly installment of Rs 9 cr.

The government delayed further payment citing the financial crunch faced by the state, the source said. The financial crunch turned out to be a blessing for the government as it has only paid Rs 9 cr out of the Rs 179 crore obligation, he added.

On the possibility of DMRC insisting on full payment of the consultancy fee, the source said that it was unlikely as DMRC itself had advised that the project be abandoned. The monorail projects in Thiruv-ananthapuram and Kozhikode, touted by the government as the panacea for the traffic problems in these cities, were abandoned by the state government on Thursday. The main reason for abandoning the project was the prohibitive cost quoted by the single bidder for the project.

The decision to abandon the project was taken on the advice of DMRC, the consultant for the project as the bidder quoted over Rs 10,000 cr for the project, which was nearly double the amount worked out by DMRC for the venture. Instead of the monorail, DMRC has advised the state government to opt for the Light Metro System. The government has now directed DMRC to study and submit a report about the Light Metro System.