EPC model for Metro’s Line 2; funds sought from JICA, others

Jaipur: Urban development and housing (UDH) department has finalised the engineering, procurement and construction model (EPC model) for construction of the Line 2 (Sitapura to Vidyadhar Nagar) of Jaipur Metro and is now pursuing loans from organisations like the Japan International Corporation Agency (JICA).
Confirming the development, UDH department's secretary and MD of Jaipur Metro Rail Corporation (JMRC), Vaibhav Galriya, told TOI that there were two initial proposals for the funding pattern for construction of the Line 2 – the traditional EPC model and the BOT (Build-Operate-Transfer) model. However, state govt has opted to construct it on the EPC model, he said.
"Hyderabad Metro had attempted this BOT model. However, it proved unsuccessful. We are in the final stage of transforming the corporation (JMRC) into a joint venture with the Union govt. So we have decided to construct the Line 2 of Jaipur Metro on an EPC model," said Galriya.
Under the joint venture, state govt will need to cover only 20% of the project's construction cost. While the Union govt will contribute an additional 20% to the project, the remaining 60% cost will be secured through a soft loan. "We are considering agencies like JICA for the soft loan," added Galriya.
While state govt funded the construction of Jaipur Metro Line 1 (from Mansarovar to Chandpole), the second phase of the Line 1 (from Chandpole to Badi Chaupar) was funded by a Rs 969-crore loan from Asian Development Bank (ADB), which state govt is struggling to repay.
"The predicament is that state govt is not in a favourable position to get a fresh loan for Jaipur Metro, which is operating at a loss. The joint venture with the Union govt would enable the new corporation to secure a soft loan readily," said a senior Metro official.
Galriya did not provide any deadline about commencement of construction work for Line 2 but indicated JMRC is trying to start construction this year. "It is now rather challenging to fix an official deadline for the construction work. We are making all efforts to initiate construction in 2025 itself," he said.