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Delhi: DMRC may not be able to pay loan instalment for first time

TOI.in / Jul 23, 2020, 19.36 PM IST

For the first time in nearly two decades, Delhi Metro Rail Corporation (DMRC) will not be able to repay this year’s instalment for the Rs 35,198-crore soft loan it has taken from Japan International Cooperation Agency for construction. DMRC has requested the Centre to bail it out by rescheduling the repayment and defer the payment to next year. Delhi Metro has been closed since March 22 as a measure to curb the spread of Covid-19, leading to a revenue loss of about Rs 1,200 crore in the past 123 days. While it has earned no passenger revenue in the past four months, a source said, its income through other sources have also dried up with the Covid-19 pandemic affecting every sector. However, DMRC has to maintain and keep its 389km network with 285 stations in the working mode, apart from paying salaries to its 10,000-strong workforce. According to the source, DMRC may be able to carry on without revenue for some more time but its biggest headache is repaying the loan. DMRC has received loans from Japan International Cooperation Agency at a concessional rate of interest varying from 1.2% to 2.3% for 30 years with a moratorium of 10 years. Although DMRC is responsible for repaying the loan, it is taken from Japan International Cooperation Agency by Government of India for the Delhi Metro project. Though DMRC is tightlipped on seeking the Centre’s assistance, it is likely that it may also need a financial bailout later.

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