The Delhi Metro Rail Corporation is facing a shortfall of nearly Rs.550 crore for its second phase as the Japan Bank for International Co-operation has approved only 48 per cent funding as against 55 per cent proposed by the company.

The DMRC is planning to ask the Centre and the Delhi government to increase their equity contribution to meet the shortfall. The proposed equity stakes at present is15 per cent each.

Delhi Metro will also look at increasing revenues from property development, but only 5 per cent of the total cost will be raised through property development. The company had raised about Rs.700 crore from property development in the first phase of the project.

The funding patterns were still on and the final figures for state equity and property development is expected to be finalised shortly.

DMRC will also use revenue from its existing operations to fund the second phase of its operations. It will meet 5 per cent of its cost through internal accruals, while another 5 per cent is expected to extend as interest-free loan for land acquisition by the government.

Work on Phase-II is scheduled for completion by 2010.

Also see:

JBIC completes project appraisal for Delhi Metro Phase-II