Japan funds for Metro Phase III to come in Jan

Delhi Metro's Japanese connection will be getting a boost, come January. As work on the third phase of the network gathers steam, the Japan International Cooperation Agency (JICA) will be releasing the first instalment of its loan for the Delhi Metro network next month. Pegged at 53 per cent, the loan from JICA for the Rs 35,242 crore project will form the bulk of funding for Phase III, said sources. It will be used to bankroll the civil work, source rolling stock as well as for acquiring the brand-new signaling system for this phase.A senior official said: "The coming through of the first instalment means that the pace of work on the third phase can now be increased. Since JICA loan is 53% of the entire project, it plays an important role in the project planning." The good news for the Delhi Metro Rail Corporation (DMRC) is that with the Central and Delhi governments pitching in with another 21.27%, the onus for getting the rest of the project cost, which is with the DMRC, is not very much.A source said: "Delhi Metro can raise the rest of the amount, which is not much considering a substantial 70% has already been raised by JICA and the government."The first instalment of the 53 per cent loan is around Rs 6,900 crore, said officials.On ground, the coming through of the loan is the signal for Delhi Metro to ramp up its tendering process. The tenders, which are built on JICA funds, need to be vetted by the Japanese agency before they can be awarded. This process has already gotten off the ground, said sources. "The funding will also be used to source rolling stock for the Phase III as well as for the state-of-the-art signaling system that will be introduced in this phase," added the official.JICA has so far paid over Rs 16,000 crore for phases I and II. DMRC has paid back a part of the loan for Phase I amounting to Rs 129.55 crore. The interest for the loan amount for both phases have been repaid to the tune of Rs 696.95 crore.