The proposed Light Metro projects in Kozhikode and the state capital would not be executed in the PPP model but by the public sector.
While 'Metro Man' E.Sreedharan opposed the PPP model for the Light Metro, a few senior Kerala bureaucrats backed it.
"It has now been decided to have this project in the public sector with 40 per cent of the project cost to be shared between the state and the centre, with the rest to come by way of loans from the Japan International Cooperation Agency with very low rates of interest. Sreedharan, advisor to Delhi Metro Rail Corporation, would be overseeing the project," Chief Minister Oommen Chandy told reporters here on Monday after a final meeting between Sreedharan and other state government officials.
Sreedharan opposed the PPP model asserting that it would be a heavy burden for the state. Ahead of this meeting when reporters caught up with Sreedharan, he said, "everyone knows what my stand is".
Various political parties including the Congress had said that ignoring Sreedharan's views would balloon into a major controversy.
Chandy, whose government is already facing numerous allegations of corruption, decided to go with Sreedharan's suggestion.
"The final decision would be made by the state cabinet later this month," said Chandy.
