JICA preferred over AIIB for Surat metro funding in revised DPR; cost escalation of Rs 827 crore

When asked why JICA is being preferred over AIIB, the official said, “JICA has revised it’s loaning pattern for India on May 31, 2018. After the revised guidelines, JICA loans have become more favourable. It is cheaper and for a longer period… Apart from the lower percentage of interest on the loan sought, the period of repayment for JICA has been extended to over 40 years. In comparison, AIIB does not offer loans beyond 20 years of repayment.” The official, however, said that if JICA refuses to fund, then AIIB will be considered as the second best option.

According to the revised DPR prepared by Delhi Metro Rail Corporation (DMRC) as per the new Metro Rail Policy, the Surat metrorail project will have a total length of 40.35 kilometers and 38 stations. The project will have two corridors. The longest will be a 21.61 kilometer-long corridor between Sarthana and Dream City which will have a 6.47 kilometer long underground section. The underground stations are Chowk Bazar, Maskati hospital, Surat Railway station, Central Warehouse, Labheshwar Chowk and Kapodra. The second is a fully elevated corridor of 18.74 kms between Bhesan to Saroli. The two corridors will intersect at Majura Gate station. “The earlier DPR was prepared as per the 2006 guidelines,” the official added.

Talking about an escalation of Rs 827 crore in the total cost of Surat metrorail project, the official said it was largely due to the delay caused in the beginning the project, where work was originally scheduled to begin during the year 2018. Apart from that, about five more hectares are being acquired for the depots which are proposed to be set up near Dream City and Bhesan.