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No PPP Mode for Tvm, Koz Light Metro

Published: 19th May 2015 06:01 AM  |   Last Updated: 19th May 2015 06:01 AM   |  A+A-

THIRUVANANTHAPURAM:  Putting all speculations to rest, the state government has decided against allowing private sector participation in Light Metro projects in Thiruvananthapuram and Kozhikode.

The projects to be funded by the state will be implemented by the Delhi Metro Rail Corporation (DMRC). The state Finance Department, which was in favour of Public-Private Partnership (PPP) model, had strongly pitched for private funding of projects. The decision was taken at a high-level meeting held in the presence of Chief Minister Oommen Chandy here on Monday. The decision needs to be ratified by the Cabinet.

Oommen Chandy said E Sreedharan, principal adviser to DMRC, will lead the project. “The state government will bear 20 per cent, the other 20 per cent will be met by the Central Government. The rest will come as loans from JICA for half per cent interest. It will lessen the burden on the state government, according to Sreedharan,” the Chief Minister said. The state government’s contribution would come to Rs 1,619 crore. The JICA loan would be taken only after the Cabinet nod, Chandy said.

The Kerala Mono Rail Corporation Ltd has already cleared the Detailed Project Report (DPR). There will not be any tender procedures and the DMRC will be directly entrusted the consultancy.

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