State discusses share transfer in metro project

At a recent meeting, the West Bengal government discussed with the Indian Railways the process of initiating the transfer of its 50 per cent share in the Rs 4,874-crore East-West Metro Corridor project.

The union cabinet has already cleared the proposal, which would give the railways full charge of the project in Kolkata.

Following the transfer, the railway ministry would own 74 per cent stake in the project, while the Urban Development Ministry will hold the rest. Earlier, the Kolkata Metro Rail Corporation (KMRC) was equally owned by the Urban Development Ministry and state government.

The project is already running one year behind its completion schedule of 2014-15. The metro corridor will connect the IT city Salt Lake with the western fringes.

Incidentally, Railways completely owns the existing Kolkata Metro Rail system. KMRC, a joint venture company formed by the Union Urban Development Ministry and the West Bengal government, was in charge of executing the project.

Japan International Cooperation Agency (JICA), the senior-term debtor of the project, is funding 46.22 per cent (Rs 2,253 crore) of the project cost for the East West metro with a moratorium of 18 years.