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Thiruvananthapuram: The high-level meeting held under the aegis of chief minister Oommen Chandy dismissed the finance department directive on PPP hybrid mode for the light metro project in Thiruvananthapuram and Kozhikode. The project will be implemented with the participation of the centre and state along with Japan International Cooperation Agency (JICA) loan.
Chandy said after the meeting that E Sreedharan and DMRC would co-operate with the light metro project. The final decision will be taken in the cabinet meeting.
Chandy said the Cabinet would arrive at a final decision as it has to give its approval regarding the guidelines in seeking JICA loan.
The government was on a sticky wicket regarding the light metro as the finance department was advocating for a hybrid PPP mode while Sreedharan opted for turnkey consultancy.
Though Chandy held talks with E Sreedharan twice, the DMRC chief was not in a position to change its stand. Even in the meeting the chief minister had with Sreedharan on Monday morning, the later was firm on his stand. The expert panel decided to approve Sredharan's stand following this.
'It has now been decided to have this project in the public sector with 40 per cent of the project cost to be shared between the state and the centre, with the rest to come by way of loans from the Japan International Cooperation Agency with very low rates of interest. Sreedharan, advisor to Delhi Metro Rail Corporation, would be overseeing the project,' Chief Minister Oommen Chandy told reporters here on Monday after a final meeting between Sreedharan and other state government officials.
Sreedharan opposed the PPP model asserting that it would be a heavy burden for the state. Ahead of this meeting when reporters caught up with Sreedharan, he said, 'everyone knows what my stand is'.
Various political parties including the Congress had said that ignoring Sreedharan's views would balloon into a major controversy.
Chandy, whose government is already facing numerous allegations of corruption, decided to go with Sreedharan's suggestion.
'The final decision would be made by the state cabinet later this month,' said Chandy.
Thiruvananthapuram: The high-level meeting held under the aegis of chief minister Oommen Chandy dismissed the finance department directive on PPP hybrid mode for the light metro project in Thiruvananthapuram and Kozhikode. The project will be implemented with the participation of the centre and state along with Japan International Cooperation Agency (JICA) loan.
Chandy said after the meeting that E Sreedharan and DMRC would co-operate with the light metro project. The final decision will be taken in the cabinet meeting.
Chandy said the Cabinet would arrive at a final decision as it has to give its approval regarding the guidelines in seeking JICA loan.
The government was on a sticky wicket regarding the light metro as the finance department was advocating for a hybrid PPP mode while Sreedharan opted for turnkey consultancy.
Though Chandy held talks with E Sreedharan twice, the DMRC chief was not in a position to change its stand. Even in the meeting the chief minister had with Sreedharan on Monday morning, the later was firm on his stand. The expert panel decided to approve Sredharan's stand following this.
'It has now been decided to have this project in the public sector with 40 per cent of the project cost to be shared between the state and the centre, with the rest to come by way of loans from the Japan International Cooperation Agency with very low rates of interest. Sreedharan, advisor to Delhi Metro Rail Corporation, would be overseeing the project,' Chief Minister Oommen Chandy told reporters here on Monday after a final meeting between Sreedharan and other state government officials.
Sreedharan opposed the PPP model asserting that it would be a heavy burden for the state. Ahead of this meeting when reporters caught up with Sreedharan, he said, 'everyone knows what my stand is'.
Various political parties including the Congress had said that ignoring Sreedharan's views would balloon into a major controversy.
Chandy, whose government is already facing numerous allegations of corruption, decided to go with Sreedharan's suggestion.
'The final decision would be made by the state cabinet later this month,' said Chandy.
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