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.
