Delhi Chief Minister Sheila Dikshit directed transport department to bring a cabinet proposal to fund the proposed Rs 2,235 crore monorail project on the lines of the Delhi Metro Rail project.
The move by the minister follows the detailed presentation given by Mangu Singh, Chief of DMRC on the first monorail project in north India and its funding pattern.
It is learnt that the DMRC chief suggested the state government to adopt the funding pattern of the metro rail project. After getting the nod from the Delhi cabinet, the project would be forwarded to the central government for approval from the group of ministers.
DMRC has proposed sharing of the financial burden between the Delhi government, the central government and any other entities that may join in.
Dikshit informed reporters that the Japan International Corporation Agency (JICA) which is funding Delhi Metro projects agreed to fund monorail.
Plan one proposes complete government funding of the project which includes 20 per cent equity by centre and Delhi government which would be around Rs 444.50 crore each while Rs 1,069 crore would come from Japan International Corporation Agency (JICA) through soft loan at the rate of 1.40 percent per annum or market borrowing at the rate of 12 per cent for the project.