Delhi Metros Japanese connection just got a boost. Even as the work on Metros Phase III gathers steam,the Japan International Cooperation Agency (JICA) which funded Phase-I and Phase-II of the Delhi Metro on Thursday signed an agreement with India for providing Rs 7,922 crore as a soft loan for construction of Phase-III. The line is estimated to cost Rs 28,000 crore,with six corridors planned so far. It will add 105 km to the existing 185-km long Metro network.
The agreement was signed between JICA,the official donor agency of government of Japan,and the Ministry of Finance here.
Japan has decided to fund Delhi Metros Phase-III despite its commitment in the wake of the deadly earthquake and tsunami that rocked the country last year.
Shinichi Yamanaka,Chief Representative of JICA,and Prabodh Saxena,Joint Secretary,Department of Economic Affairs,Ministry of Finance signed the loan agreement.
The Rs 7,922-crore loan would have to be repaid within a period of 30 years with a grace period of 10 years and would carry a soft interest of 1.4 per cent. JICA would fund a total of Rs 14,097 crore for the Phase-III. The agency had earlier funded the two phases of the Delhi Metro.
In the Phase-III,the Centre and Delhi government would provide Rs 7,497 crore as equity and Rs 5,100 crore as
interest-free subordinate debt for land acquisition and Central taxes.
The loan funds will be allocated to civil works,electrical and communication-related construction,rolling stock procurement and consulting services.
Yamanaka said the loan agreement signifies the importance Japanese government gives to Indias overall growth and prosperity.
The loan for Delhi Metro would go a long way in further expanding the Metro network in Delhi and the NCR region,thus providing comfortable,safe,punctual and environment-friendly public transport to large number of NCR residents, he said.
JICA has so far paid over Rs 16,000 crore for phases I and II. DMRC has paid back a part of the loan for Phase I amounting to Rs 129.55 crore. The interest for the loan amount for both phases have been repaid to the tune of Rs 696.95 crore.