Delhi Metro seeks alternate funding for Phase II

The Delhi Metro Rail Corporation (DMRC) is in talks with financial institutions to fund the Rs 8,118 crore second phase of the rail project, in case the deal with Japan Bank of International Corporation (JBIC), which had funded 64 per cent of the first phase, does not materialise.

"It is more likely that JBIC will be our partner for the second phase too. We are also in talks with domestic and international financial institutions to have options," an official said.

The DMRC has suggested both partners of the project "" the Centre and the Delhi government""to have an equity of 30 per cent. Officials said the debt component for the second phase would be about 50-55 per cent of the total cost, compared with 64 per cent in the first phase. The terms and conditions of the loan will be the same as they were in the first phase, with an 8-year moratorium period.

The DMRC itself will also fund a significant portion through its internal accruals from property development. The second phase of the project will be 53 km long, with 45 stations.

The phase, that will take the metro till New Ashok Nagar in north Delhi and till Qutub Minar in south Delhi, has been cleared by the Delhi government, the union urban development ministry and an empowered committee. It still awaits clearance from a group of ministers (GoM).

According to a metro rail executive, the DMRC is ready with all preliminary work like soil-testing, topographic tests and traffic clearances for the second phase.

"We will soon be ready with the pre-qualification of consultants and contractors. But all financial obligations can take place only after the GoM gives the project a go-ahead," the official said.

Officials said the process of taking the metro to Noida and Gurgaon could progress only after the concerned state governments agreed to the terms of funding. The state governments would soon have a meeting with the Centre on this, an official said.

The DMRC had suggested that it would bear the cost of the rolling stock, while the state governments of Uttar Pradesh and Haryana would need to bear the rest.