Kochi Metro Rail Limited sought Rs 779 crore, gets Rs 450 crore in budget

DC CORRESPONDENT
KOCHI, FEB 29

Though the state’s commercial capital of Kochi failed to get its due share from the annual Union Budget, Finance Minister Arun Jaitley has allocated funds for Kochi Metro rail project . The budget has sanctioned Rs 450 crore for it though the Kochi Metro Rail Limited had sought Rs 779 crore.

According KMRL authorities, the main shortfall in the budget allocation is in the head of account - Pass Through Assistance (PTA), where the provision is Rs 434 crore as against Rs 638 crore that had been sought. Overseas loan assistance is sourced through the head of account. However, in the revised estimate of the Union Budget for financial year 2015-16, an additional amount of Rs 44.88 crore has been provided by way of equity.

During the last fiscal, KMRL had received an allocation of Rs 643.96 crore, including the additional revised equity allocation of Rs 44.48 crore. With this allocation, the Union government has provided the entire sanctioned amount of Rs 753.73 crore as equity to KMRL. The state government’s contribution towards equity till now is Rs 641.50 crore.

Responding to the centre’s allocation, KMRL managing director Elias George said, “we hope the shortfall in allocation can be resolved during the course of the forthcoming fiscal, when the budget estimates are revised. The present allocation is sufficient for going forward with the plan of activities proposed by KMRL,” he said.