Kochi Metro - Background

Background

On 22 December 2004, the Government of Kerala assigned the Delhi Metro Rail Corporation (DMRC) the task of preparing the detailed project report (DPR) for the Kochi Metro rail project. It was expected to start by 2006 and complete by 2010. But the project was delayed because the Central Government expressed serious doubts about the economic viability of the project. The Kerala government had sought Central Government's assistance for the project to be built on the lines of the Delhi Metro project in terms of funding. The Centre refused this request. The Union Government was in favour of implementing the project in public–private partnership (PPP), ruling out its own financial involvement. The Ministry of Urban Development and the Planning Commission were also against government investment in the project, and refused to accept it as a project in line with the Delhi and Chennai metros. The political rivalry between the LDF government in Kerala and the UPA government at the Centre was a major reason for such developments and the slow down in the project. The LDF wanted it to be in Public sector, which was not accepted by the Central Government.

Kochi Metro will follow the Chennai Metro and Delhi Metro models and will be implemented on a joint venture basis, with investments by the Central and State Governments. A cabinet decision was taken to form a special purpose vehicle (SPV) called Kochi Metro Rail Ltd. (KMRL) as per orders from Planning Commission and the Union Government for the implementation, operation and maintenance of the metro project.

On 22 March 2012, the Public Investment Board (PIB) gave clearance to the Kochi Metro project. With PIB recommendation, the project proposal would go to the Union Cabinet for the final approval. It was decided that the contribution from the Union Government would be 20.26% of the total project cost which works out to be 1002.23 crore (US$180 million). On 28 March 2012, at a KMRL board meeting, the decision was taken to officially entrust the Kochi Metro rail project work to the DMRC. The meeting also finalized the number of metro stations on the line as 22, instead of the earlier proposed 23. On 3 July 2012, Union Government gave final clearance to the project. The decision was announced after the cabinet meeting in New Delhi. Addressing media persons, then Managing Director of KMRL, Tom Jose said, "Now we will sit down with our valued partner, DMRC, and chalk out the way forward, obtaining advice and guidance from former DMRC Chief, E Sreedharan. We aim to complete the project within a span of 3 to 4 years."

On 14 August 2012, the state government reconstituted the Board of Directors of KMRL. Power Secretary Elias George was appointed as the new Managing Director, replacing Tom Jose. It is believed that Jose's differences with Sreedharan led to the decision. Chief Minister Oommen Chandy stated that it was part of administrative decision. The rest of the board would comprise of Chief Secretary K Jayakumar, Finance Secretary V P Joy and Water Resources Principal Secretary V J Kurian. The Central Government's nominees are Union Urban Development Secretary Sudhir Krishna as the ex-officio chairman of the KMRL Board, S. K. Lohia, Officer on Special Duty (Urban Transport); Jitendra Thyagi, Director (Works) of the DMRC; D. D. Pahuja, Director (Rolling Stock, Signalling and Electrical) of the Bangalore Metro Rail Corporation (BMRC) and A K Gupta, Additional Member (Works) of the Railway Board. On 7 September 2012, the State Cabinet decided to induct the Ernakulam District Collector into the director board of KMRL. The move is expected to expedite land acquirement for the project and also pacify complaints KMRL was sidelining the efforts of the district administration. The first meeting of the reconstituted board was on 11 September 2012.

The 10th meeting of the Board of Directors of the Kochi Metro Rail Limited was held on 22 January 2013 at the Ministry of Urban Development in New Delhi. The meeting was presided over by the Chairman (KMRL) and Secretary of MoUD, Dr.Sudhir Krishna. The Board has decided to seek Expression of Interest for conducting a feasibility study for extension of the Kochi Metro Rail system to Angamaly, Kakkanad and to Mattanchery /Fort Kochi as well as linking Thripunithura and Aluva in a loop. The Board has also decided to invite Expression of Interest (EoI) for conducting a Social Impact Assessment and for preparing a Resettlement and Rehabilitation (R &R) plan for the Kochi Metro project An Environment Impact Assessment (EIA) was conducted for the project by the School of Environmental studies, Cochin University of Science and Technology in 2005 as part of the DPR preparation for Delhi Metro Rail Corporation (DMRC). While this contains a brief Social Impact Assessment (SIA), it is necessary to conduct a comprehensive SIA on the basis of the present metro corridor; which would form the basis for preparing a comprehensive R & R plan. Consequently KMRL would undertake the selection of a competent consultant/ agency for conducting a comprehensive SIA study and for preparing a consequential R & R plan, which can be readily implemented on the ground. The Board also decided to constitute a subcommittee for negotiate and prepare the draft contractual agreement with DMRC. The composition of the subcommittee is:

1. Elias George - Chairman
2. S.K. Lohia - Member
3. D.D. Pahuja - Member
4. V.P. Joy – Member

Apart from the main funding for the project, KMRL board also decided to explore options of supplementary funding for specified components of the project.