Kerala Monorail Corporation Ltd. (KMCL) is planning to rope in a multinational consultancy firm to study the Public-Private-Partnership (PPP) mode mooted by the Planning Board for the Light Metro project for Thiruvananthapuram and Kozhikode.
The move to carry out the study is without seeking the approval of KMCL chaired by Chief Minister Oommen Chandy and KMCL vice-chairman and Minister for Public Works V.K. Ebrahim Kunju, sources said.
The detailed project report (DPR) prepared by the Delhi Metro Rail Corporation (DMRC) for the 35.12 km Light Metro proposed in the two cities at Rs.6,728-crore has finally reached the Finance Department after the scrutiny by the Project Financing Cell of the Planning Board.
While mooting the PPP mode, the Planning Board has asked the Finance Department to “look at the figures and confirm that funds will be available to meet the repayment requirements and equity shares of the projects.” The KMCL’s move to rope in a consultancy firm through the back door to study the PPP mode has raised many doubts, sources said.
‘Delay tactics’
The proposed study is aimed at further delaying the clearance of the DPR, which was cleared by the board on October 24 last, and the project, sources said. The DMRC had already been made the turn-key consultancy by the board chaired by Mr. Chandy.
It has been pointed out that the Planning Board’s recommendation is also against the State’s stand communicated by the Chief Minister to the Union Urban Affairs Ministry that the PPP mode with Viability Gap Funding would not be viable for the MRTS (Mass Rapid Transit System).
The DMRC had also opposed the PPP mode, citing, among other things, the cost escalation by 10 to 12 per cent owing to inflation as execution would be delayed by 20 to 24 months in PPP mode.
The DMRC has told the government that they are going to close down the establishments in the two cities in view of the inordinate delay in clearing the project.
Meanwhile, the Project Manager in KMCL’s corporate office here has resigned as uncertainty prevails over the project. The Project Manager in Kozhikode has been transferred and asked to take up his post here.
Planning Board mooted the idea
DMRC against PPP mode citing cost escalation
