The ambitious Kochi Metro project was announced with much fanfare and a high-level meeting chaired by Chief Minister Oommen Chandy decided to form Special Purpose Vehicle (SPV), Kochi Metro Rail Limited (KMRL), in June last year.

However, six months down the lane, the project has landed in a complete mess on the question of implementing agency. Initially, it was Delhi Metro Rail Corporation (DMRC) which was supposed to implement the project.

However, it appears, the current crisis has been brought about by KMRL which is not really happy about DMRC playing a supervisory role in implementation of the project. KMRL cause is supported by State government which has decided to go in for a global tender to award the main project.

The ‘oust DMRC campaign,’ jointly perpetrated by KMRL and the UDF government has already raised many eyebrows. Many see this move as a preparatory ground for swindling money. And, the money involved in the project is a whopping Rs 5,000 crore!

So, what exactly went wrong? Going by reliable sources, it all started with the DMRC approaching the Central Government for awarding the work without inviting tender.

“It made the move keeping the State in utter darkness”, a highly placed KMRL official told Deccan Chronicle.

He confirmed the DMRC request was promptly rejected by the Centre forcing it to approach the State government.

The State government, according to him, was planning to take a soft loan to the tune of Rs 2,200 crore from Japan International Corporation Agency (JICA)

“We’re supposed to get that loan at 1.5 per cent interest rate payable in 30 years. But, one of JICA condition was that we should go in for a global tender to ensure transparency. Later, we also wrote to DMRC confirming our intentions to go in for a global tender”, the official revealed.

KMRL, on its part, didn’t want DMRC as the implementing agency since that would’ve meant an “unwanted expenditure” of Rs 300 crore.

“If DMRC is to come in, then, we would need to pay them 6 per cent of the total project cost towards supervisory charges”, he said.

The official said KMRL was not against DMRC playing a key role, per se, but it should take part in the bidding process to bag contract.

“We sent the letter to DMRC to this effect”, he said. It’s further learnt that KMRL is only against DMRC and not E. Sreedharan.

“We’ve all along been trying to avail his services. “Mr Tom Jose had even written a letter on December 20 requesting Sreedharan to be Kochi Metro’s advisor and mentor. Even the government wants Sreedharan’s services”, the official claimed.

According to him, Tom’s communication received a very cold response as both Sreedharan and DMRC didn’t even bother to acknowledge it.

Meanwhile, DMRC project director P. Sriram said even DMRC would’ve gone in for a global tender once awarded with the contract.

“We’d earlier availed loan from JICA to fund Phase 1 and 2 of Delhi Metro. We’re also in the process of getting further loans from the same agency for Delhi Metro Phase 3. The agency knows us well and wouldn’t have raised any kind of objections in granting loan”, Sriram claimed.

Slamming KMRL for twisting and tweaking the arguments in an attempt to misguide, he said it was not ethical business to backtrack as the State had promised to award the full work to DMRC while signing the Detailed Project Report (DPR) in 2007.

He also said the KMRL dream of associating Sreedharan minus DMRC would only remain a dream. “Sreedharan may offer his advice in his individual capacity. But, I don’t see him taking any official responsibility. He’s already said he wouldn’t be in without DMRC”, he said.

Meanwhile, Tom Jose who’s found himself at the centre of this unpleasant controversy said the decision to go in for global tender was a collective one. “What prevents DMRC from participating in the tender?” he wondered.

He reiterated that global tender would ensure transparency and would result in a saving of Rs 300 crore. “I can use this amount for four other projects”, Tom quipped. He also discounted the worry that Kochi Metro would suffer without DMRC participation.

“I don’t think it’s a matter of concern. I don’t think the project will get delayed as we’ve Bangalore and Chennai models before us. If you take stage-to-stage comparison, we’re much ahead”, he claimed.

So, it’s now clear, the KMRL-DMRC honeymoon is virtually over. What remains is Sreedharan’s willingness to take up a job to which he’s already shown his back. If he also backs out, then, the fate of Kochi Metro is almost doomed!

The DMRC had reportedly
* approached the Centre for awarding the work without inviting tender. But its request was promptly rejected by the Centre forcing it to approach the State government.
* The State government, according to a KMRL official, was planning to take a soft loan to the tune of Rs 2,200 crore from Japan International Corporation Agency (JICA).

But, one of JICA condition was that government should go in for a global tender to ensure transparency. “If DMRC is to come in, then, we would need to pay them 6 per cent of the total project cost towards supervisory charges,” he added.

* DMRC project director P. Sriram said the KMRL dream of associating Sreedharan minus DMRC would only remain a dream.

“Sreedharan may offer his advice in his individual capacity. But, I don’t see him taking any official responsibility,” he said.

The ‘oust DMRC
campaign,’ jointly perpetrated by KMRL and the UDF government has already raised many eyebrows. Many see this move as a preparatory ground for swindling money.

And, the money involved in the project is a whopping Rs 5,000 crore!