India NewsNews

Thousands of crores of projects in Metro amidst Corona epidemic, the threat may sink

Delhi Metro has been closed for the last five months due to the Corona epidemic. Since the lockdown, the metro is losing more than 9 crores daily. Apart from this, many projects are closed. However, the debt burden is increasing.

New Delhi. Due to Corona, many projects of Delhi Metro Rail Corporation (DMRC) have been delayed. Project delays are becoming a major burden for the metro. Due to a lack of operations, on the other hand, the Delhi Metro is losing crores daily. According to an estimate, DMRC is incurring a loss of around 9.3 crores daily after the lockdown.

Metro operations in many cities
In addition to Delhi in India, cities like Mumbai, Kolkata, Bengaluru and Lucknow have metros. However, the performance of the Delhi Metro is the most spectacular. Metro officials say that social distancing will be a major problem when the Metro operation resumes in the coming time. Operational call due to social distancing.

The big problem here is what will happen to the thousands of crores of loans taken for metro projects. Will Metro be able to repay banks and financial institutions. Regarding this problem, Hyderabad Metro Managing Director NVS Reddy says that the first interest rate should be cut by 2-3% while giving relief to the Metro. Currently, it is around 11%. Apart from this, the loan repayment deadline should be increased from 9-10 to at least 20 years.

Delhi Metro is giving salary to employees
If you take a look at Delhi Metro, then it is giving salary to employees. At present, there is no deadline for the opening of the metro. In the current financial year (2020-21), it has paid 79 crores as an interest to the Japanese International Corporation Agency (JICA). He has to repay a total of Rs 1163 crore as loan in the current financial year, of which 354 crore is interest and 809 crores are the principal amount.

60% bank loan of the project cost
If you look at the earnings, in the financial year 2019-20, 3122 crores from passenger fares, rental income 462 crores, 97 crores from the lease, 34 crores from consultancy, and 2 crores from feeder bus service. Up to 60 percent of loans are taken from the bank for most of the metro projects, which is currently under threat.

Related Articles

Back to top button