JICA to inject Rs. 38,700-cr in metro projects

    JICA Metro Projects
    In an encouraging development in the metro rail sector, the Japanese International Cooperation Agency (JICA) has shown keen interest in financing six more Metro rail projects in Delhi, Pune, Vijayawada, Chennai and two light Metro projects in Thiruvananthapuram and Kozhikode which may require a total loan of Rs 38,700cr, senior vice president, JICA, Hideaki Domichi has recenlty expressed the agencies' willingness when it enquired about the latest stage of progress in respect of these projects including phase-IV of Delhi Metro and Phase-II of Chennai Metro, which are under consideration for approval.

    Under the new modified special terms for economic partnership (STEP) with Japan approved by the government, JICA loan comes with an interest rate of 0.30% as against the rate of 1.30% on earlier loans commanding tenure of loan 40 years as compared to 30 years for normal JICA loans. The Kochi Metro Rail project has got Rs.450-cr in the Union Budget for financial year 2016-17, as against Rs.779-cr that was requested. The main shortfall is in the Head of Account – Pass Through Assistance (PTA), where the provision is Rs.434-cr as against the allocation of Rs.638-cr that had been sought. In the financial year 2015-16, KMRL received an allocation of Rs. 643.96-cr including the additional revised equity allocation of Rs.44.48cr. With this allocation, the Central Government has provided the entire sanctioned amount of Rs.753.73-cr as equity to KMRL. The State Government's contribution towards equity as on date for the Centre-State joint venture project is Rs. 641.50-cr and that the funds are sufficient to take care of the initial work of the project, said an industry insider.
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