The Metro Rail Corporations second attempt to
sell yet another proposal to ease Kochis traffic
woes has failed to produce any immediate positive results.
say the Metros liaison officer who met Kerala State
Industrial Development Corporation (KSIDC) top brass with
the new project has been asked to wait till the state
cabinet gives its views on the Skybus project of the Konkan
Railway Corporation (KRC).
stating that the government is preferring Skybus to the
Metro rail, after the latter was found non-feasible given
Kochis geography, KSIDC had invited KRC to give
a full presentation on the Skybus project before the cabinet
in the third week of this month.
the cabinet approves the concept, we will shape up the
report for presenting it before the Global Investors'
Meet (GIM), a KSIDC officer tells domain-b.
KRC has already given the detailed project report,
complete with the certification of the credit rating agency
ICRA, to the Kerala state government, the sources
and Credit Rating Agency (ICRA) has projected 15 to 16
per cent internal rate of return, which is very positive.
Though ICRA rating itself is enough to go ahead, KSIDC
is submitting the project for another round of scrutiny
by an independent agency.
leading consultancies, Infrastructure Leasing Finance
Services and Infrastructure Development Finance Corporation,
have completed preliminary examination of the project
report. We will have to entrust the task of scrutiny
with one of them. The consultancy will analyse the project
threadbare for technical and financial feasibility,
the KSIDC official adds.
agency may take a month to complete the scrutiny. Till
then KSIDC and KRC will have to delay their efforts to
constitute a special purpose vehicle (SPV) for mounting
the project. We are waiting for KSIDCs reply.
The next step can be taken only after the Kerala government
gets back to us, says KRC managing director B Rajaram.
sources, however, express confidence that the exercise
will be over by 1 5 November 2002. This will give
us enough time to sketch the SPV. The reason for involving
an independent agency to study the report is to insulate
it from any possible allegations.