Delhi Metro falls short of Rs 550 cr

Japan Bank's approval of 48% funds not enough.

The Delhi Metro Rail Corporation may face a shortfall of nearly Rs 550 crore for its second phase as the Japan Bank for International Co-operation has approved only 48 per cent funding of the Rs 8,118 crore project against the 55 per cent proposed by the corporation.

The DMRC now planned to ask the Centre and the Delhi government to increase their equity contribution to meet the shortfall, DMRC officials said. At the moment, the proposed equity stakes of the two stand at 15 per cent each.

In addition, Delhi Metro will also look at increasing revenues from property development. According to the original estimates, 5 per cent of the total cost was to be raised by property development.

"We have raised about Rs 700 crore from property development in the first phase of the project itself. So bridging the gap should not prove to be a huge problem," the officials said.

DMRC officials said discussions over the funding pattern were still on and final figures for state equity and property development would be decided shortly.

DMRC will also use revenue from its existing operations to fund the second phase of its operations. It will meet 5 per cent of its cost through internal accruals, while another 5 per cent is expected to be extended as interest-free loan for land acquisition by the government.

DMRC expects to finish the current year with an income of Rs 150 crore, up from Rs 74 crore last year. The second phase comprises six routes with a total length of 53.02 km and 45 stations. Of this, 42.24 km will be elevated, 8.93 km will be underground and 1.85 km will be at the ground level. The project is expected to be completed by 2010.

The second phase will include Delhi University-Jahangirpuri, Central Secretariat-Qutab Minar, IP-Yamuna Depot-New Ashok Nagar, Yamuna Depot-Anand Vihar ISBT, Shahadra-Dilshad Garden and Kirti Nagar-Mundka routes.