Centre asks DMRC for Delhi govt’s help to repay loans

The Delhi Metro Rail Corporation (DMRC) is reported to have taken a soft loan of Rs 35,198 crore for construction work from Japan International Cooperation Agency (JICA).

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New Delhi (Metro Rail News) – The Union Ministry of Urban and Housing Affairs (MoHUA) has asked the Delhi Metro Rail Corporation (DMRC) to approach the Delhi government for financial aid for repayment of its loan instalments this year as non-operation of the metro network due to pandemic has reduced the revenue of the corporation. The DMRC is reported to have taken a soft loan of Rs 35,198 crore for construction work from Japan International Cooperation Agency (JICA).

With Metro shut since March 22 due to the Coronavirus pandemic, DMRC has suffered a revenue loss of about Rs 1,300 crore. Last month, it had written to the Centre, requesting it to defer the payment to next year.

Anuj Dayal, executive director, corporate communication, DMRC, was quoted saying that, “We have received such a communication from the ministry recently. The same is being examined and processed”. The DMRC is yet to approach the Delhi government for further progress in the matter.

DMRC has repaid Rs 3,337 crore of the loan to JICA. According to another DMRC official, Metro has to pay Rs 1242.83 crore as instalment for the financial year 2020-21 as per different media reports. However, a detailed figure from the DMRC about the matter is awaited.

According to a news report, “The Metro has paid Rs 79.19 crore on account of interest for this financial year and the balance liability of Rs 1163.64 crore is yet to be paid.”

The loan has been granted at a concessional rate of interest, varying from 1.2% to 2.3%, and has to be repaid in 30 years with a moratorium period of 10 years.

The Metro, which has a network of 389km with 285 stations, earns nearly Rs 3,600 crore from fare and by renting out its space at stations to commercial establishments.

Commercial establishments operating at metro stations had written to the DMRC to defer rental payments as there had been no business since March.

There are about 400 shops apart from property development at stations such as Nehru Place and HUDA City Centre, etc., which attracts a lot of crowd due to the restaurants. The DMRC is in the process of decision making. However, it has not initiated the process to reach out to the Delhi Government according to sources in the DMRC.

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