The Delhi Metro Rail Corporation Ltd (DMRC) has suggested an hybrid PPP model for the Thiruvananthapuram Light Metro project, in Kerala (India) after opposing a pure PPP model.
According to finance secretary of Kerala K M Abraham, it would be difficult to find investors for the project due to the low project's financial internal rate of returns (FIRR) which is 2.07% and 8.02%, without and with property development respectively. K M Abraham commented.
"The economic rate of return has been projected at 17.99%. These figures make the project viable. But as the detailed basis of the calculations is not available, finance department is unable to make any comments on the same."
DMRC has proposed to combine direct investment for some of the project components and a PPP financial model for the rest. This hybrid scheme establishes that Kerala Monorail Corporation Ltd (KMCL) would invest in land acquisition, alignment and formation, R&R package, utilities, security and multi-model traffic integration, while the depot, traction, signalling system and rolling stock could be combined and tendered through a PPP model.
On 28 August 2014, the State Government decided to use Light Metro, instead of Monorail, in Thiruvananthapuram mainly due to cost overruns.
The Thiruvananthapuram line will start from Technocity and terminate at Karamana covering a distance of 23 km with 19 stations, along the old NH 47. Slight accommodations were made for the proposed flyovers at Kazhakuttam, Sreekariyam and Ulloor. Special spans are proposed where the line crosses the railway line at Railway Km 221/6-8.
The line would involves the development of three routes:
The total project investment, based on April 2012 prices, is estimated at Rs27 billion (US$426 million) excluding taxes of Rs4.75 billion (US$75 million).
Thiruvananthapuram, also known as Trivandrum, is the capital of the Indian state of Kerala the largest and the most populous city in kerala and the headquarters of the Thiruvananthapuram District.