The central government and the Delhi government are taking steps to reduce their dependence on the Japan International Cooperation Agency (JICA) for funding Delhi metro rail extension projects.
As part of this initiative, the Delhi Development Authority (DDA) is providing Rs 1,500 crore phases and it has already disbursed Rs 310 crore to DMRC, unconfirmed reports indicate.
The money would be utilised by the Delhi Metro Rail Corporation (DMRC) for Phase III and IV expansion plans in Delhi NCR.
Apart from the Rs 1,500 crore that it has promised to sanction, union urban ministry wants DDA to allocate an additional fund of Rs 10,000 crore for phase III expansion.
DDA would fund the project through its own funds, including the Urban Development Fund. This money is generated from the conversion charges that DDA gets from converting leasehold properties to freehold, apart from other income sources, reports indicate.
It may be noted that the Ministry of Urban Development wants to lower the dependency on Japan for providing soft loans for Delhi Metro's expansion.
Earlier, the central government also called for evolving a new finance model to replace the assistance from JICA.