Constraints of funds, acquisition of land and delays in award of contracts has resulted in a cost over run of $75.3M for the Delhi Metro Rapid Transport System. With inflation, daily costs are rising by an estimated $300,000.
Against the earlier estimate of $876M, the project, scheduled for completion by March 2005, is now likely to cost $1.1bn, according to a flash project report prepared by the ministry of planning, statistics and programme implementation.
While the government of India and Delhi government hold 15% equity each in the project, Japanese funding agency Japanese Bank for International Co-operation is providing 56% of the project cost.
The remainder would come by way of property development and interest free subordinate debt.
JBIC had recently cleared the second tranche of $45.6M for the project.
The first tranche of the loan, $100M, was drawn by the Delhi Metro Rail Corporation, the implementing authority, from December 1998 onwards. The repayment of the principal amount would start after a moratorium of 10 years and would be spread over 30 years.
However, the interest, at a concessional rate of 2.3%, is payable half yearly from the date of release of funds by JBIC, official sources said. The vital rail bridge over Yamuna, an important link in the Shahdara-Tis Hazari alignment of the first phase of the Delhi Metro Rail Project, has been completed. The DMRC has already awarded contracts for the laying of tracks, electrification and signalling systems. The entire Shahdara-Trinagar stretch of the project would be completed by March 2002, it was reported, adding that the construction contract for the Trinagar-Kohat enclave has also been awarded.
