THIRUVANANTHAPURAM: After months of delay, Cabinet will take a final decision on the light metro projects proposed for Thiruvananthapuram and Kozhikode on Wednesday.
PWD Minister V K Ebrahim Kunju told DC that the projects would not cause any additional financial burden for the cash-strapped government. He said that around Rs 1,000 crore would be required for carrying out land acquisition for the projects in the two cities.
“The projects will take off immediately. We are not worried about the finance for the time being. Government land is available at both places and the work could start off in this land. Acquisition of private land would happen only next year,” said Mr Kunju.
In Thiruvananthapuram, the land needed for the project is around 8.9 hectare government land and 1.58 hectare private land while in Kozhikode 8.55 hectare government land and 1.58 hectare private land will be required for the project.
“The financial mode for implementing the project will be finalised in the cabinet. We have a couple of options before us,” said the minister.
He said the Cabinet would also spell out the role of Delhi Metro Rail Corporation (DMRC) which had demanded the role of turnkey consultant for the projects.
DMRC has demanded a consultancy fee of 6 per cent of the total project cost which works out to about Rs 6,000 crore.
Currently, two investment models mooted by DMRC are under consideration. First one is to execute the project with 80 per cent JICA loan and 10 per cent each from the State and Centre.
The second option before the government is to raise 60 per cent of the funds through bank consortiums and 20 per cent each from the State and Centre.
The state government gave the green signal for the ambitious light metro projects on October 24, 2014.
Since then there had been a long impasse on the projects with the finance department and the planning board objecting to consultancy role for DMRC without a global tender.
