Bonanza for metro to help keep Phase III on track
The Rs 2,216.69-crore allocation in the Union Budget has come as big relief for the cash-strapped Delhi Metro Rail Corporation (DMRC).india Updated: Mar 16, 2012 23:30 IST
The Rs 2,216.69-crore allocation in the Union Budget has come as big relief for the cash-strapped Delhi Metro Rail Corporation (DMRC).
The plan outlay for the DMRC will ensure that the expansion projects under phase III will remain on track.
The allocation includes Rs 1,112.57 crore as equity, Rs 355 crore as subordinate debt and grant from the Centre and Rs 749.12 crore as soft loan from financial institutions.
DMRC, which was facing a severe financial crunch when they had started construction for phase III in December 2011 with a tight deadline to meet, said the outlay would help them meet the target.
"We are quite happy with the budgetary allocation and hope that the state government would also provide us further relief," said Anuj Dayal, chief public relations officer, DMRC.
Apart from the fund inflow from the Centre, the Japan International Cooperation Agency (JICA) is likely to sanction its first installment of proposed soft loan by the end of this month, sources said.
Initial fund allocation for Metro's phase III had been cleared by the Centre and Delhi government during their last respective budgets.
While the Centre had proposed a sanction of Rs 580 crore for 2011-2012, the Delhi government had allocated Rs 1,071 crore.
Officials said the Delhi Metro had been trying to complete the tendering process and starting construction on phase III by the end of fixed 2012-13.