JICA to consider upcoming corridors of Delhi Metro's phase-4 expansion

The Japan International Cooperation Agency (JICA), which has been lending to Delhi Metro Rail Corporation (DMRC) since its inception, will continue to consider the upcoming metro corridors, despite the financial trouble the latter is facing.

Speaking to Business Standard, Nakazawa Keiichiro, senior vice-president, JICA, said DMRC was seeing an uptick in revenue with the increase in footfall.

“We have been with Delhi Metro for 20 years now and we are proud of this Japan-India partnership. There are financial issues to be resolved but this project is a very important part of the two countries’ collaboration,” he said.

The JICA is considering the upcoming three corridors under the fourth phase of expansion of DMRC (in the National Capital Region), said senior JICA officials.

Estimated to cost Rs 24,000 crore, the phase looks to connect several gaps in the city’s transport infrastructure. This route expansion, however, has been facing challenges — cost overruns fuelled by the pandemic, infrastructural issues, and DMRC’s debilitating finances.

Various extensions in the existing metro lines, along with a new “Silver Line”, which connects Aerocity with Tughlakabad (priority corridor), will be among the key projects.

The phase has six lines with a route length of 103.93 km, of which 61 km has been selected as priority. DMRC, in a recent legal submission, said it is “reeling (from) financial crisis”.

The matter pertains to the pending arbitral award of Rs 7,000 crore to be paid by DMRC to Reliance Infra Delhi Airport Metro Express Ltd (DAMEPL). 

“… if the company pursues raising any loan, (it) will not be able to serve the interest and loan repayment and may fall in a financial trap,” DMRC said in an affidavit to the Supreme Court.

Responding on the legal case, SAITO Mitsunori, chief representative, JICA India Office, said: “Whatever might happen in the legal case, their financial viability is robust, as we understand from the DMRC management. It is looking at garnering increased revenue as the ridership increases.”

The JICA in March last year had signed a loan agreement of Rs 8,000 crore with the Indian government for funding the initial three corridors of the fourth phase.

Keiichiro added DMRC met the “inclusive growth” criteria, which is the JICA’s focus for investing in infrastructure here onwards.

“We have been with India during its growth period, particularly for the past 15 years -- metro projects across Delhi, Mumbai, Chennai, and other cities. They are a means to sustainable and inclusive growth. Infrastructure projects are a means to climate action.”

He said India’s net zero target by 2070 was a potential investment segment for the JICA.

“We will try to support the Indian government’s efforts for this transition. There are several new technologies being discussed, including green hydrogen and clean coal. If benefits are provided, such technologies can be available at half the rates. We are happy to work with Indian governments to introduce such technologies,” Keiichiro said.