DMRC may get 40% of cost as loan from Japanese firm

The soft loan from Japan International Cooperation Agency (JICA) for construction of 108-km of Delhi Metro’s phase-3 may materialise soon.

The soft loan from Japan International Cooperation Agency (JICA) for construction of 108-km of Delhi Metro’s phase-3 may materialise soon.

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In the preliminary meeting with Delhi metro directors on Tuesday, a five-member committee of JICA was “appreciative” about the need for Metro expansion under phase 3.

According to sources, the meeting was “quite fruitful” and Delhi Metro Rail Corporation (DMRC) is hopeful of getting 40% to 50% of the total project cost of R32,000 crore from JICA in the form of soft loan.

“The directors discussed, at length, the project and the financial requirements for the same. The JICA team was appreciative of the project,” said a DMRC spokesperson.

“We want the loan from Japan to be finalised within this financial year. We expect the loan to come to us on the same terms and conditions and rate of interest that was applicable for phase 1 and 2,” said a source.

JICA team reportedly told DMRC directors that they will get back to DMRC about the funding after discussing the matter with the Japan government and the ministry of urban development in India.

There had been uncertainty over the sanction of the loan by JICA following the massive earthquake that devastated Japan last month. Loans from it were instrumental in the commissioning of phases 1 and 2.