Kochi Metro may face fund delays

Though the Union finance ministry has prioritized Kochi metro among the eligible projects of 2012 for external funding, the state will have to wait for around two years before the funds are sanctioned by Japan International Cooperation Agency (JICA). This, according to top sources in the Union finance ministry, is due to the backlog of last year's rolling plan, which will have to be cleared before taking up this year's projects.

"Several projects, in various stages of completion across states, are being expedited by clubbing them together to make a rolling plan and funds are sourced from an external agency. Kochi Metro has top priority this year. Since last year's plan is still pending, it will have to be cleared first," sources told TOI. JICA is expected to release Rs 2,170 crore for the project. "Also, given the global financial situation, it cannot be ascertained when the funds will be released," sources said.

According to the Kochi metro proposal, the total estimated project cost is Rs 5,181 crore - two-and-a-half times the original project cost. The project estimate was Rs 1,966 crore in 2005. The estimate was then revised to Rs 4,427 crore last year and the final figure was reached after finalizing the detailed project report. Meanwhile, the Union urban development ministry has sanctioned Rs 30 crore for the project. The state had already sanctioned another Rs 30 crore. The state has agreed to sanction another Rs 150 crore immediately for expediting the land acquisition process. KMRL has pegged the land acquisition cost at Rs 670 crore.

Though JICA was expected to fund 51% of the project cost as per the original plan, the agency reduced it to 45 % later after a policy revision.