Major infra projects expect delay in execution [September 17, 2011]

Kochi Metro, which has just started spreading its wings, may get delayed due to a major hurdle in terms of financing as hinted by Montek Singh Ahluwalia, Deputy Chairman of Planning Commission. “The planning commission had forwarded the state government proposal to financial study section for detailed study”, informed Mr. Ahluwalia in New Delhi on Thursday. “After the financial study, a final decision would be taken on the model to be implemented.”
Earlier, the Rs. 4,427 crore project was given principal approval and the executing authority, Kochi Metro Private Ltd, led-by Tom Jose has already started preliminary works. Denying the participation of PPP in terms of funding, the Kochi Metro authority has envisages an equity participation of 15 per cent each by the Central and the State government, with the rest of the capital to be raised through loans and other debt instruments. But, Urban development minister Kamal Nath expressed in favour of private players’ participation and funding through PPP.
It is reported that the Kerala Chief Minister Oommen Chandy, who is expected to visit New Delhi next week, to meet Prime Minister Dr Manmohan Singh and take up the matter. Kochi Metro is one of the dream projects of all Keralites and the state government has already started going ahead with the works related to the metro. It has secured a commitment from Japan International Cooperation Agency (JICA) for providing 51-52 per cent of the project’s estimated cost.
On the other corner, the east-west corridor project of Kolkata metro may also feel the heat of planning commission, as Ahluwalia informed. The Rs. 4,874.58 crore project to connect Kolkata with Howrah by an underwater metro line which has recently been taken over by the Rail Ministry from the Urban development Ministry and the state Govt. of West Bengal is under the scanner of planning commission.

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