Fresh hurdles have cropped up for the Light Metro proposed for the cities of Thiruvananthapuram and Kozhikode with the Finance Department favouring Public Private Partnership (PPP) mooted by the State Planning Board instead of the turnkey contract proposed by the Delhi Metro Rail Corporation (DMRC).
The Finance Department, in its assessment note on the Detailed Project Report submitted by the DMRC and the note of the Planning Board, has suggested that the civil works and construction activities for the Light Metro projects that fetch less or nil revenue returns should be carried out by the government through the Special Purpose Vehicle, Kerala Monorail Corporation Ltd (KMCL). It also proposed land acquisition by the government.
In the note submitted to the Public Works Department, the department said rolling stock, signalling and communication, and operation and maintenance should be taken up in the PPP mode as it will enable the entry of more private players.
The consultancy of the project proposed for 35.12 km in the two cities should be awarded after inviting bids, the department said arguing that this will bring down the consultancy charges.
Surprise move
The Finance Department’s note has come as a surprise as the board of KMCL chaired by Chief Minister Oommen Chandy had decided to give turnkey consultancy to the DMRC after the DPR was submitted in October last.
A high-level committee had also been set up to work out the modalities of signing the agreement with DMRC.
The DMRC was also the turnkey consultant to the monorail that was scrapped on account of the prohibitive cost quoted by the lone bidder.
The move is seen as part of a conspiracy to show the door to the DMRC as being a government it will not participate in the tender process.
The note has also thrown up the question: why the consultancy work of Light Metro should not be handed over to Kochi Metro Rail Limited instead of the DMRC that is using retired railway personnel for the work.
The assessment along with the DPR will now be placed before the Cabinet for clearance. Sources in the PWD said the Chief Minister had already given directions to place the DPR and the notes in the Cabinet.
Government yet to clear project
Finance Department favours PPP mode
