State cabinet to decide on pact for monorail projects

Kerala Monorail Corporation (KMCL) submitted the agreement and terms of conditions for the monorail projects in Thiruvananthapuram and Kozhikode before the state cabinet for discussion and clearance. The state cabinet would go through the documents and decide on clearing it. Earlier, the board of directors of KMCL, chaired by the state Chief Minister Oommen Chandy, cleared the agreement and terms of conditions to be signed with the Delhi Metro Rail Corporation (DMRC). It may be recalled that DMRC is the general consultant for the monorail projects in Thiruvananthapuram and Kozhikode and KMCL is the special purpose vehicle (SPV) established by the state government for the projects. KMCL drafted a single agreement for the projects of the two cities as the general consultant and the executing agency are the same. The date of signing the agreement with the DMRC will be finalised after it is cleared by the cabinet and other formalities are completed. The DMRC will get 3.25 per cent of the estimated total cost of Rs 5,581 crore as consultancy fee as decided at a board meeting in April. Of the Rs 5,581 crore, Rs 3,590 crore is expected to be incurred for the Thiruvananthapuram project and Rs 1,991 crore for Kozhikode. Meanwhile, KMCL will decide on roping a funding agency for the project. It is learnt that the Japan International Cooperation Agency (JICA) has evinced ‘keen interest’ to fund the monorail project.