The Rs. 595.08 crore allotted in Saturday’s Union Budget for the Rs. 5,537-crore Kochi Metro Rail project falls short of expectations, top officials associated with the project have said.
“The allocation is in stark contrast with our demand for a total of Rs. 918.68 crore. The project’s commissioning will suffer delay if more funds are not handed over during the fiscal,” sources said. Availability of funds was critical for completing the project’s 18-km-long Aluva-Maharaja’s College Ground Reach 1 by June, 2016, they said.
The metro’s 25-km first phase between Aluva and Pettah near Tripunithura needs a total of Rs 5,537 crore. Inordinate delay in land acquisition had prompted metro agencies to limit the corridor to Maharaja’s Ground.
Kochi Metro Rail Limited (KMRL) had demanded Rs. 318.68 crore as Centre’s equity in the project, Rs. 500 crore as PTA (Pass Through Assistance) and Rs. 100 crore as subordinate debt for taxes. But the project was allotted Rs. 273.80 crore, Rs 260.64 crore and Rs 60.64 crore respectively in Saturday’s Budget. The metro had been allotted Rs 462.17 in the Centre’s interim Budget in February 2014.
The State and Central governments are expected to pool in Rs. 753.73 crore each for the project. A French overseas development agency, Agence Française de Développement (AfD), has promised approximately Rs 1,500 crore as a soft loan. Rest of the funds is expected to be raised from the Centre and the State under different heads.
