Delhi Metro Rail Corporation (DMRC) is likely to tap the domestic market for raising around Rs 5,000 crore through the debt route for the second phase of the metro project in the Capital. | |
| The corporation has raised about 56 per cent of the project cost for the first phase through a soft loan from the Japanese Bank for International Corporation (JBIC). |
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| The 40-km second phase of the Delhi metro project, which is expected to cost Rs 8,000 crore, will be complete in 2010. |
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| Of the project cost, Rs 3,000 crore will come by way of equity contributions from the Centre and the Delhi government, while the remaining funds will be sourced as debt. |
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| While the JBIC loan for the first phase has been sourced at a nominal 1.8 per cent rate of interest, DMRC officials said even if domestic funds were availed of at a higher rate of interest for the second phase, the transfer of technology to domestic players would result in a 10-15 per cent lowering of the cost. |
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| "Raising around Rs 5,000 crore from the domestic market is not a problem," a senior DMRC official said. The government was in talks with the JBIC for the second phase, but we also had the option of tapping the domestic market, he said. |
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| The corporation will have to return the JBIC loan for the first phase in 30 years and there is a moratorium of 10 years. On the remaining funds, the corporation would not be required to provide dividends in the near future, officials said. |
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| Also, more lucrative sections, in terms of ridership, to destinations like Rohini and Dwarka were yet to go on stream, they added. |
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