KOCHI: The Planning Commission has given an in-principle nod for the Kochi Metro Rail Project. Disclosing this in New Delhi on Thursday, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the Commission had no objection in sanctioning the project. He also said the Finance Department of the Centre would conduct a study into the financial aspects of the project.The Centre will take a final stand on the mode of implementation of the project only after analysing the results of the Finance team’s report, he said. Earlier, the state government had requested the Centre to consider implementing the project in Chennai and Delhi Metro Rail model.The economic formula put forward by Kerala was that fifty percent of the total expenditure will be raised from various financial institutions and the State and the Centre will contribute 20 percent each. The remaining 10 percent will be garnered through tax exemptions. The total project cost is estimated at `4,427 crore.However, the Planning Commission has not mentioned anything about the mode of implementation of the project. Some members of the commission had even expressed their concern over the financial model suggested by Kerala. The members also suggested a Public-Private-Participation (PPP) model, which, according to the state is not a feasible idea. However, a final decision in this regard would be taken after Chief Minister Oommen Chandy visited the Prime Minister next week.The state has already sought the financial support of the Japan International Corporation agency. The agency is expected to give 53 percent of the total project cost as loan for a period of 30 years. The state government has also earmarked Rs 156 crore for Metro Rail-related projects in the City. The preliminary works of these projects have already started.
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