Japanese funding for Metro`s phase III too

After apparently dithering on funding Delhi Metro`s phase III, the Japanese International Cooperation Agency has agreed to extend financial assistance.

Last Updated: Feb 07, 2011, 21:58 PM IST

New Delhi: After apparently dithering on
funding Delhi Metro`s phase III, the Japanese International
Cooperation Agency has agreed to extend financial assistance
to the project that envisages to add another 105 kilometre to
the existing 200 km network.

"It has been decided. I was told by (DMRC chief) E
Sreedharan that Japanese funding has been tied up," Chief
Minister Sheila Dikshit told reporters.

The Chief Minister said her government will give its
"share" of total cost to the crucial project. However, she did
not specify the amount.

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 with six corridors coming up and the Metro
network will expand by another 105 km.

Sources said the Japan International Cooperation
Agency has given positive indications that it will fund the
project. But a formal communication has not been sent by the
Centre to JICA asking it to fund.

"The formal communication has to be sent by the
Government of India after it approves the Phase-III project.

That has to be done by the Government," the sources said.
The Phase-III proposal is currently being examined by
a Group of Ministers of the Centre and the formal approval for
it is expected in the coming months.

Sources said the Phase-III is likely to be implemented
at 40:60 debt equity ratio whereas the Delhi and Central
Governments will contribute 20 per cent each of the total
project cost.

While five per cent can be raised through property
development, the rest is likely to be raised through loans
from agencies like JICA.

Delhi Government has been trying to get the Delhi
Development Authority (DDA) to partly fund the Phase-III but
the efforts are understood to have failed with Dikshit today
indicating that the Delhi Government will give its portion.

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

The Chief Minister said the high speed airport service
line will become operational within a month and depending on
its functioning the government may opt for more such PPP lines
in the fourth phase of Metro expansion.

She said the fourth phase of Delhi Metro will bring
far-flung colonies closer to each other.

PTI