Kochi metro stakeholders are happy with the allocation of Rs. 940 crore for the rail project in Friday’s State Budget, though they reiterated the demand for prompt handing over of funds for the project, which is expected to be commissioned in June 2016.
A top metro official said this was precisely the same amount the Kochi Metro Rail Limited (KMRL) sought from the State. “But a portion of funds promised in 2014 Budget is yet to be handed over to KMRL. Timely handing over of funds by the State and the Centre is critical for the Rs. 5,537-crore project since civil works are nearing completion. Systems works will begin shortly, while coaches will begin arriving from January 2016,” the official said. The metro had achieved financial closure over a year ago, with Canara Bank promising Rs. 1,170 crore and French external lending agency AFD assuring an approximately Rs.1,500-crore loan.
The Centre and the State were to provide rest of the funds. KMRL had to seek an additional Rs.470-crore loan from Ernakulam District Cooperative Bank due to the delay by the State and the Centre in disbursing their share of funds for the metro and allied land acquisition.
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“The State will repay the loan in 10 years, while the Centre’s share can be claimed by re-appropriation through supplementary demand for grant,” official sources said. “KMRL is unable to pay compensation to many land owners since only Rs.247 crore was allotted in 2014 State Budget, in the place of Rs. 967 crore that was sought. It was in this context that we took an additional Rs. 470-crore loan.”
The metro agency has not begun availing Canara Bank’s loan, while a portion of the AFD loan was allotted during the past two Union Budgets. Setting apart of Rs. 595.08 crore in the recent Union Budget for metro had fallen short of expectations, since KMRL had sought a total of Rs. 918.68 crore.