Jaipur Metro in desperate need of funds

Jaipur (JP): Indecisiveness on the part of the government might upset the financial condition of the Jaipur Metro Rail Corporation (JMRC) leading to delay in the Phase – I (Mansarovar to Chandpole) corridor, schedule to be commissioned on June 2014.

With approximately Rs 100 crore left in the accounts, the JMRC is in desperate need of funds to continue with the pace of the ongoing project. Despite Rs 627 crore sanctioned from the Central government, a decision to sign the memorandum of understanding (MoU) for the joint venture is still awaited.

“On November 22, 2013, the Centre sent a proposal to the Chief Secretary, government of Rajasthan, to sign an MoU for the joint venture. As the election code of conduct was enforced, it could not happen at that time. As the agreement is yet to be signed, the Centre has withheld its share,” an official source said.

“The proposal was re-submitted as the project will be reviewed by the chief secretary appointed newly by the Raje government,” the source added.

The Central government will provide funds in form of equity. As per the norms, the Centre will have a 20% stake in the project and this might holding back the new state government in the joint venture.

As Metro deadline is approaching fast, the construction at project sites has gained momentum. While the amount from ADB and the Centre government remains on papers, the available funds with the JMRC are exhausting quickly.

“For the Rs 3,149 crore Metro project, the JMRC has so far received Rs 1,802 crore sanctioned by the previous state government. The corporation has approximately spent Rs 1,697 crore on the project. As the election code of conduct will be enforced soon for the Lok Sabha elections, there is a no ray hope to receive the funds in near future,” the source said.

On the contrary, finance director of JMRC Sanjay Solanki said, “There are sufficient funds for this financial year. The approvals sanctioned are in the pipeline and we are hopeful that the funds will be released soon.”

The ADB had recently given in principle approval to provide a loan of RS.969 crore. Even the bank is willing to release the funds, but is held back by the lack of progress in the project. “The JMRC cannot even ask the Asian Development Bank (ADB) to lend advance money as the bank will only release money after seeing the construction on site,” the source added.

Key information:

  1. Total project cost: Rs 3149 crore
  2. Money received: Rs 1802 crore
  3. Money Spent : Rs 1697 crore
  4. Approved funds on papers
  5. Centre Government : Rs 627 crore
  6. ADB Bank loan : Rs 969 crore