Japanese bank nod to loan for Metro expansion

There are indications that the problem of funding Phase-3 of the Delhi Metro's expansion may be over. After providing financial assistance for the first two phases of the Delhi Metro's expansion, Japanese International Cooperation Agency (JICA) has agreed to provide a loan to the Delhi Metro Rail Corporation (DMRC) to construct 105-km-long Metro lines in Phase-3.

There are indications that the problem of funding Phase-3 of the Delhi Metro's expansion may be over. After providing financial assistance for the first two phases of the Delhi Metro's expansion, Japanese International Cooperation Agency (JICA) has agreed to provide a loan to the Delhi Metro Rail Corporation (DMRC) to construct 105-km-long Metro lines in Phase-3.

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Delhi chief minister Sheila Dikshit said the Delhi metro has tied up with the Japanese Government for the same.

"Earlier, I was under impression that it (funding pattern) was not decided. I was mistaken. Sreedharan informed me that the Metro has tied up with the Japanese bank," Dikshit said.

It is, however, still not clear how much of R28,000 crore Phase-3 cost would be shared by the Japanese agency.

"We have positive indications from the Japanese agency," a DMRC spokesperson said. "The official confirmation will come after the government of India writes to the Japanese Government,” he added.

Sources said JICA might agree to give 40% of the estimated cost of R28,000 crore for Phase-3 expansion.

"The project’s remaining cost would be met from the equity of the central government and the Delhi government. DMRC may come up with infrastructure bonds to arrange part of the cost," a senior Delhi government official said.