Delhi Metro gears up for Phase-III

Last Updated: Tuesday, February 15, 2011 - 00:22

New Delhi: Delhi Metro Monday initiated
the process of finalising the funding pattern of its ambitious
Phase-III when it presented its proposal for the project that
envisages adding another 104 km to the network to the Planning
Commission.

The decision on the funding pattern, which has been a
contentious issue, will take time as only premilinary details
were discussed at today`s meeting during which the Delhi Metro
officials made a detailed presentation on Phase-III project.

With its Phase-II project coming nearly to an end,
the Delhi Metro has already prepared detailed project reports
for all six corridors proposed under the Phase-III plan and
presented them before the country`s top financial body.

Delhi Metro chief E Sreedharan and other senior
officials attended the meeting and presented their case before
the commission, which has to decide on the funding pattern.

While the Planning Commission wants the debt equity
ratio to be increased to 50:50, sources said the Delhi Metro
has expressed its reservations against such high equity
investments by the Delhi and Central Governments.

Sources said Delhi Metro has proposed a debt equity
ratio of 40:60 under which the two governments will contribute
20 per cent each and the rest to be raised by loans from
agencies like Japan International Cooperation Agency (JICA).

"It was a preliminary meeting with the Planning
Commission. The presentation was made by our officials on the
six corridors for which the DPR has been prepared. No decision
was expected on Monday," sources in the Delhi Metro said.

Delhi Government gave its in-principle approval to the
project in October and asked the DMRC to rework on three
corridors so that ring road and areas like Jamia Nagar be
connected through the Metro.

The DPR was prepared by the DMRC last month after
which it has been decided to extend the Phase-III network to
105 km.

Sources said Delhi Metro officials gave indications
that they will makes changes in the Central Secretariat-Red
Fort Standard Gauge corridor so that heritage buildings are
not affected.

"These are all minor problems. These can be sorted out
and the DPR doesn`t include all minute details...," the
sources said.

The meeting also came a week after the JICA gave
positive indications to extend financial assistance to the
project.

JICA has funded the Phase-I and Phase-II of the Delhi
Metro and is also funding other Metro projects in the country.

Phase-III is likely to be implemented at a cost of Rs
28,000 crore.

Delhi Government has been trying to get the Delhi
DDA to partly fund Phase-III but the efforts are understood to
have failed.

The Planning Commission was also of the view that DDA
should partly fund Phase-III so that the debt equity ratio
can be reduced to 50:50.

PTI



First Published: Tuesday, February 15, 2011 - 00:22

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