KMCL to discuss funding at a meeting on December 18
The Japan International Cooperation Agency (JICA) has shown ‘keen interest’ in funding the 22.2-km Monorail, planned from Technocity to Karamana in the capital at a cost of Rs.3,590 crore.
A decision regarding this is expected at the first board meeting of the Kerala Monorail Corporation Limited (KMCL), chaired by Chief Minister Oommen Chandy, to be held here on December 18.
If the KMCL, the SPV set up to execute the monorail projects, goes for the JICA offer, the State Government need to find only 20 per cent of the estimated cost for the project. But, the JICA offer has come with a rider that 30 per cent of the procurement needed, including the rolling stock, should be purchased from Japan. “The JICA has informed that the loan can be arranged in 8 to 9 months,” according to Principal Adviser, Delhi Metro Rail Corporation, E. Sreedharan.
The DMRC, which prepared the Detailed Project Report, has suggested four funding options to the State government, as no private party will come forward to invest with the Internal Rate of Return so low.
The project cost without taxes and duties is Rs.2,703 crore. It will be Rs.3,178 crore if taxes and duties are taken into account. But, the project, on completion in 2019, will cost Rs.3,590 crore with the cost per km at Rs.161.71 crore. The Internal Rate of Return (IRR), on completion, will be 0.67 per cent.
The DMRC has identified six plots in the 22.2-km stretch for development. The IRR will be 1.61 per cent once the properties are developed. However, the economic rate of return is 14.77 per cent. Mr. Sreedharan says the investments made will come back to the society in seven years. Utilising the Rs.900 crore from the 5 per cent Green Cess that the State government has decided to levy on the petrol and diesel sold, and the 20 per cent grant from the Union government are the options. However, the State will have to find Rs.73 crore for the four flyovers proposed and money for acquiring 2.820 hectares from private parties.
The rolling stock, especially the tyres for the cars of the elevated rail-based mass rapid transit system (MRTS), is a very crucial item. The DMRC has proposed driverless trains.
The number of trains required for 2017 is 22, as per the projected traffic of 2.47 lakh per day.