JICA to provide Rs 14,000 cr for Delhi Metro's Phase-III

New Delhi, Aug 11 (PTI) The devastating tsunami suffered
by it notwithstanding, Japan would fulfil its commitment by
funding 40 per cent of the total cost of Delhi Metro's
ambitious Phase-III project.
The 103.05-km Phase-III, which was cleared by the
Empowered Group of Ministers on Mass Rapid Transit System on
Tuesday, will have four new corridors and will be built at a
cost of Rs 35,242 crore.
The Japan International Cooperation Agency (JICA), which
partially funded DMRC's Phase-I and II projects, will provide
Rs 14,097 crore -- 40 per cent of the total cost -- as loan,
according to the EGoM which cleared the proposal.
Though the JICA had informally communicated to Delhi
Metro chief E Sreedharan last year that it could fund the
project, the devastating tsunami that hit Japan in March
had cast doubts whether the Agency would fund Phase-III.
However, the Japanese government conveyed to India in
April that its assistance and partnership to infrastructure
projects would continue as per plans.
While the Centre and Delhi Government will infuse Rs
7,497 crore, which is over 21 per cent of the total cost, as
equity, they will provide Rs 5,100 crore as interest-free
subordinate debt for land acquisition and Central taxes.
"It also includes loan from Government of Japan (JICA) of
Rs 14,097 crore (40 per cent) and grant by DDA of Rs 1,500
crore (4.26 per cent)," an official statement issued after the
meeting said.
The Delhi Metro will raise Rs 1,586 crore (4.5 per cent)
through property development and Rs 5,462 crore (15.5 per
cent) through loans from financial institutions, the EGoM
headed by Finance Minister Pranab Mukherjee decided.
The Phase-III is likely to be completed by 2012.
The assurance about fulfilling their commitment on
infrastructure projects in India was given by Japanese
officials to the then Foreign Secretary Nirupama Rao when she
visited Japan in April.
A team from JICA had also met senior officials of the
Delhi Metro and discussed aspects related to the project in
April.
Besides the Delhi Metro, Japan is assisting projects
like Delhi-Mumbai Industrial Corridor (DMIC) and Dedicated
Freight Corridor(DFC). It is also partially funding the
Chennai Metro.
This would be the first time that the DDA will fund any
Metro project.
The Phase-III, which will be completed by 2016, will have
a total of 67 stations with 15 inter-change points that will
facilitate free movement of people.
Delhi Metro, which currently has a network of 190 km, has
already started preliminary work like conducting geo-technical
survey, soil and other mandatory tests on all the proposed
corridors to save time.
Tenders for certain corridors and constructing third
bridge on the Yamuna River have already been floated. The
Phase-III will kick off with the construction of a small
stretch from Central Secretariat-Mandi House that is aimed at
decongesting the over-crowded Rajiv Chowk station.
As part of its preliminary work, Delhi Metro has already
completed staff allocation for the Phase-III project and has
also appointed project directors, Delhi Metro officials said.
The corridors on the Phase-III are -- Mukundpur to Yamuna
Vihar, Janakpuri West to Kalinidikunj, Central Secretariat to
Kashmere Gate and Jahangirpuri-Badli.
Japan was plunged into chaos after a devastating
earthquake sent a tsunami crashing through areas along its
east coast in March leaving more than 23,000 people dead or
missing and causing an estimate loss of USD 300 billion.