From trains to signalling and telecommunication systems, Japanese technology will dominate the Chennai Metro Rail’s phase II project.
Last week, when a team from Japan International Cooperation Agency (JICA) came to the city, extensive discussions took place on phase II of the project.
JICA has funded phase I that cost about ₹14,600 crore.
For phase II too, the Chennai Metro Rail Limited is likely sign a loan agreement with JICA, which means all components of the project, except civil work — trains, signalling and telecommunication systems, will be from Japan, highly placed sources said.
The CMRL is most likely to sign the deal with JICA as soon as the final approval from the Centre comes. “The entire project cost is ₹80,000 crore; as far as we understand, no other international bank is ready to make such a huge investment and even if they have money, they cannot give it to us at the earliest. The advantage we get in taking it up from JICA is the low rate of interest on the loan. It will much lesser than what we got for phase I project,” the sources said.
But they refuse to comment on what the interest rates are for phase II.
Stark contrast
While Japanese technology will be playing a crucial role in phase II, for phase I equipment from across the world was used: trains from French company Alstom, signalling and telecommunication from Germany-based Siemens and tunnelling machines from several countries.
“The team that visited us will apprise the authorities of JICA in Japan and send a report soon. That will decide the next course of action in the project,” the sources added.
