The Delhi metro’s proposed 108-km expansion under phase 3 seems to be back on track as Japan International Cooperation Agency (JICA) has initiated talks with Delhi Metro in this regard.
A team of JICA will meet Delhi Metro directors at Metro Bhawan on Tuesday to discuss the project’s modalities of funding and loan requirements.
After last month’s earthquake in Japan, there was an impasse on the issue of funding for the proposed R32,000 crore project as there was uncertainty about the sanctioning of the loan by Japanese banks.
Delhi Metro has proposed a debt equity ratio of 40:60 under which the two governments will contribute 20% each and the rest will be raised by soft loans from JICA. The government is expecting to get 40-50% of the project cost from JICA as soft loan, said sources. JICA had issued soft loans for DMRC’s previous two phases.
Delhi Metro sources say, the meeting will be attended by all six directors of Delhi Metro Rail Corporation (DMRC)—director (works), director (project), director (rolling stock), director (finance), director (electrical) and director (operations). However, it was yet to be decided if DMRC chief E Sreedharan will attend the meeting.
“A team has been deputed by JICA for initial discussions on loan requirements for phase 3. The meeting will take place at Metro Bhawan at 10 am on Tuesday. We are expecting that we will get some positive indications from JICA team in the meeting,” said a DMRC official.
The phase 3 project has got clearances from state and centre and also issued initial funds during the union and state budgets. Delhi government had proposed an initial allocation of R1,071 crore for the network's Phase 3 expansion, while the Centre proposed sanction of Rs 580 crore.