KMRL is in the process of determining a financial model for the 90-acre Metro Village proposed at Muttom and commercial development of 17-acre land at Kakkanad.
Tasked with operation and maintenance of Kochi Metro, loan repayment and extending metro to Kakkanad and Angamaly, Kochi Metro Rail Limited (KMRL) is finalising possible revenue sources.
This is because the 25-km-long metro proposed in phase one from Aluva to Pettah is expected to break even only in 2023. The State and Central governments are expected to pool in Rs 753.73 crore each for the Rs 5,537-crore project. Loans from French agency AFD and Canara Bank would total approximately Rs 2,670 crore.
Against this backdrop, KMRL is in the process of determining a financial model for the 90-acre Metro Village proposed at Muttom and commercial development of 17-acre land at Kakkanad. “Our Director Board meeting in February is expected to take a call on engaging a transaction advisor firm which would decide on the financial architecture, layout, extent of commercial/residential area, etc., of the Metro Village, following which construction can begin,” said Elias George, MD of KMRL.
Care will be taken to make the village eco-sensitive by giving importance to solar power, water management and controlling pollution.
Another financial model is being finalised for garnering revenue from advertisements/sponsorships for metro structures like stations, office space, kiosks etc.
To a question on raising revenue through non-ticketing sources, Mr George said this would be done through property development (like at Muttom and Kakkanad) and taking up consultancy work. “Aimed at sharing our expertise in consultancy, we are getting empowered as a multi-skilled organization offering urban-transport solutions like metro and mono rail. Moreover, we would soon shortlist a consultant to evolve a parking policy along metro corridor. Parking fee would be a revenue source.”
Currently, the State government has handed over Rs. 224.5 crore and the Centre Rs. 107.50 crore for Kochi Metro’s civil works. In addition, the State has earmarked Rs. 242.47 crore for augmenting roads, bridges etc., as part of metro’s preparatory works – building A.L. Jacob bridge, rebuilding North bridge and widening Banerjee Road, MG Road and South railway station approach road. Additional funds are expected for Pachalam overbridge, the latest addition to the list.