The Hindu : Karnataka / Bangalore News : Madhu hopeful of getting JBIC loan for project

Online edition of India's National Newspaper
Sunday, Mar 26, 2006

Karnataka

Karnataka - Bangalore

Madhu hopeful of getting JBIC loan for project

Staff Reporter

The Managing Director of BMRCL will hold discussions in Delhi on the measures to be adopted

BANGALORE: V. Madhu, Managing Director of Bangalore Metro Rail Corporation Ltd. (BMRCL), is hopeful that the project will secure a loan of Rs. 1,800 crores from the Japan Bank for International Cooperation (JBIC).

Mr. Madhu, who took charge on Friday, said he will soon visit New Delhi, and hold discussions on the measures to be adopted to secure the loan.

JBIC has set March 28 as deadline for the metro rail corporation to present its final proposal. But this cannot be done unless the Cabinet Committee on Economic Affairs (CCEA) meets in New Delhi and approves the project.

The failure to get the CCEA's clearance on March 23 has put a question mark on the metro rail corporation's prospects of securing the loan.

Deadline

Mr. Madhu told The Hindu on Saturday that the Ministry of Economic Affairs is aware of the March 28 deadline, and that he hopes that BMRC will be able to get the loan. JBIC had agreed to give the loan at 1.5 per cent interest, he said. On the prospects of the JBIC extending the deadline, Mr. Madhu hoped that he will be able work it out.

Efforts will be made to persuade Justice Shivashankar Bhat to resume his work as head of the commission inquiring into the objections raised by traders on CMH Road over the alignment of the metro rail, he said.

Opt out of panel

Justice Bhat and two other members have sent letters to the Chief Minister opting out of the panel saying that a commission is not required if only Government lands are to be acquired, Mr. Madhu said.

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