Kerala sets Kochi Metro rail rolling by joining hands with Centre

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Thiruvananthapuram: In Kerala, the funding route is Centre-state joint ventures first for the pedastrian urban road and rail transport business and PPP (public-private participation) for it ambitious aviation projects.

The state government has unequivocally chosen Centre-state JV route for its Rs 3,048-crore greenfield Kochi Metro project, joint venture between state PSUs for its KSRTC malls and PPP funding for the state’s fourth international airport in Kannur.

The state Cabinet, which met here on Tuesday, has decided to go ahead with Kochi Metro Rail as a Centre-state JV. The state government has also sanctioned an ad hoc working capital of Rs 50 lakh for setting up a camp office at Kochi to expediate the project. The 10-year long Kochi metro project plan was close to getting scrapped after the Planning Commission had prescribed a PPP route funding in the model of Hyderabad metro rail. CPI(M) had been campaigning against the Hyderabad-model ever since Delhi Metro Rail chief E Sreedharan came out with allegations that the metro network in Andhra Pradesh was being extended to enable the developer earn windfall profit.

“The Kochi metro project will be to the Delhi Metro Rail Corporation. It will be a joint venture between the state and the Centre,” Chief Minister VS Achuthanadan told reporters after the Cabinet meeting.

The Kochi Metro rail project is back in picture, only after the Union railway ministry finally approved the Centre-state-model funding. The project will cover a 26-km stretch between Tripunithura and Aluva and is expected to be completed in three years. State law minister M Vijayakumar has been authorised to keep tabs on the city transport infrastructure’s timely completion.

At the same time, the state’s ailing transport PSU KSRTC and its cashcow PSU sibling KSTFC have been putting their heads together on a chain of 30 commercial malls utilising the space owned by KSRTC at its urban busstands. This state PSU synergy replaces a PPP proposal by Reliance to set up commercial malls at KSRTC busstand properties.

“For settng up the bus stand commercial complex in Kozhikode alone, KSRTC-KTDFC joint venture has been allowed to invest Rs 43 crore,” the chief minister said.

The annuity inflow from the very first year is to be shared on 50:50 basis between the two state PSUs. This is estimated to fetch about Rs 80 crore per year.