NEW DELHI: The Centre has asked Delhi Metro Rail Corporation (DMRC) to approach Delhi government for financial assistance for repayment of soft loan it had taken from Japan International Cooperation Agency (JICA) for construction work.
The Union ministry of housing and urban affairs, in fact, has asked all the metros in the country to write to their respective state governments for assistance on repayment of loans taken from lending agencies.
“We have recently received such a communication from the ministry. The same is being examined and processed,” said Anuj Dayal, executive director, DMRC.
DMRC had received loans from JICA at a concessional rate of interest varying from 1.2% to 2.3%, and the total loan of Rs 35,198 crore was repayable in 30 years with a moratorium of 10 years. Although it was DMRC’s responsibility to repay the debt and interest, the loan was taken from JICA by the Centre for the Delhi Metro project.
“The primary responsibility of paying back the loan of an external lending agency is with the Special Purpose Vehicle (SPV), which in Delhi’s case is DMRC. If the SPV is unable to repay, it can approach the respective state government for assistance,” a source said, adding that DMRC was yet to write to Delhi government.
Delhi Metro operations have been shut for the public since March 22 as a measure to curb spread of Covid-19. However, it has led to a loss in revenue worth Rs1,300 crore for DMRC. While it has earned no passenger revenue in the past four months, a source said, its income through other sources had also dried up. DMRC might be able to carry on without passenger revenue for some more time, but its biggest trouble currently was to repay JICA, for which it had sought the Centre’s help to bail it out by rescheduling the loan repayment and defer this year’s payment to next.
Till now, DMRC has repaid Rs 3,337 crore to JICA, and the balance liability was of Rs 31,861 crore. DMRC has been receiving loans from JICA for all its projects and always repaid the instalments on time.
For financial year 2020-21, DMRC was to pay Rs 1,242.8 crore (Rs 434.1 crore interest and Rs 808.7 crore principal) for the loan to the Centre. It had paid Rs 79.2 crore on account of interest during this year, and a balance of Rs 1,163.6 crore was yet to be paid.
The Union ministry of housing and urban affairs, in fact, has asked all the metros in the country to write to their respective state governments for assistance on repayment of loans taken from lending agencies.
“We have recently received such a communication from the ministry. The same is being examined and processed,” said Anuj Dayal, executive director, DMRC.
DMRC had received loans from JICA at a concessional rate of interest varying from 1.2% to 2.3%, and the total loan of Rs 35,198 crore was repayable in 30 years with a moratorium of 10 years. Although it was DMRC’s responsibility to repay the debt and interest, the loan was taken from JICA by the Centre for the Delhi Metro project.
“The primary responsibility of paying back the loan of an external lending agency is with the Special Purpose Vehicle (SPV), which in Delhi’s case is DMRC. If the SPV is unable to repay, it can approach the respective state government for assistance,” a source said, adding that DMRC was yet to write to Delhi government.
Delhi Metro operations have been shut for the public since March 22 as a measure to curb spread of Covid-19. However, it has led to a loss in revenue worth Rs1,300 crore for DMRC. While it has earned no passenger revenue in the past four months, a source said, its income through other sources had also dried up. DMRC might be able to carry on without passenger revenue for some more time, but its biggest trouble currently was to repay JICA, for which it had sought the Centre’s help to bail it out by rescheduling the loan repayment and defer this year’s payment to next.
Till now, DMRC has repaid Rs 3,337 crore to JICA, and the balance liability was of Rs 31,861 crore. DMRC has been receiving loans from JICA for all its projects and always repaid the instalments on time.
For financial year 2020-21, DMRC was to pay Rs 1,242.8 crore (Rs 434.1 crore interest and Rs 808.7 crore principal) for the loan to the Centre. It had paid Rs 79.2 crore on account of interest during this year, and a balance of Rs 1,163.6 crore was yet to be paid.
Coronavirus outbreak
Trending Topics
LATEST VIDEOS
More from TOI
Navbharat Times
Featured Today in Travel
Get the app