Delhi Metro Rail Corporation mulls domestic borrowing for Phase-IV

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Source:  www.financialexpress.com

With Japan International Cooperation Agency’s revised terms and conditions on funding the Phase-IV Metro project not ‘acceptable’ to the government, the Delhi Metro Rail Corporation (DMRC) may go for domestic borrowing to finance the proposed 103.93-km corridor that would increase the length of Delhi Metro network to around 400 km.

1“Funding of Phase-IV may be done through domestic borrowings. We are also contemplating tax-free bond issues, but a final decision is yet to be taken,” said DMRC managing director Mangu Singh.

The detailed project report for the corridor has already been readied and talks on funding the project were on with JICA. But the lending agency’s condition for the ‘step’ loan — that a portion of materials for the project must be bought from Japanese companies — hasn’t found favour with the government.

The government is now looking at the possibility of developing the project through the PPP model, he said. More info

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