New metro policy makes PPP mandatory for project nod

Delhi Metro Rail Corporation (DMRC) Principal Advisor E. Sreedharan has said that Kerala can forget a light metro with public private participation (PPP).

Speaking to The Hindu on Thursday over telephone, Mr. Sreedharan said the chances of Kerala executing the Light Metro on its own was remote.

To avoid private participation, the State should mobilise Rs. 6,728-crore needed for the projects.

But now the new metro rail policy of the Union government had made PPP mandatory for obtaining Central assistance. The Left Democratic Front (LDF) government in the State was unlikely to adopt the PPP mode, he said.

Mr. Sreedharan said he had expressed reservations about the new metro rail policy when the draft was handed over to him by then Union Minister for Urban Development M. Venkaiah Naidu two months ago. “No discussion as sought by me has taken place,” Mr. Sreedharan said and added that he would not be surprised if the Union Ministry of Urban Development returned the Light Metro proposal to the State to incorporate the changes as laid down in the new policy.

Project report

The DMRC had submitted the Detailed Project Report (DPR) for the Light Metro in 35.12 km in Kozhikode and Thiruvananthapuram to the State government over two years ago.

The DPR envisages 20% equity each from the State and Central governments and the remaining 60% through external funding or domestic borrowing.

Recently, the State government had made the DMRC the turnkey consultant for the project. The government had also approved preparatory work, including construction of four flyovers, costing Rs. 272.84 crore. Land acquisition for the project was also on.

The future of Kerala Rapid Transit Corporation Ltd (KRTL), the SPV floated by the State to execute the project, and reopening of DMRC’s office in Kozhikode that was wound up over a year ago, also hang in the balance with the new policy.