While the authorities and residents are in a jubilant mood over the nod given by the union cabinet to the Kochi metro rail project, land acquisition remains the major stumbling block in the way of the timely completion of the project.

While land acquisition for the preparatory works like widening of roads and construction of railway overbridges, ahead of the project implementation is underway, the acquisition procedures for metro rail construction are yet to be initiated. Nearly 30 hectares of land would have to be acquired for the project.

Though the revenue authorities claim that land acquisition can be completed within a year, it is generally felt that it may not be possible.

The Land Revenue Commissioner has not yet issued the notification for acquiring land for the main project.

Some landowners have already consented to surrender their land to widen the MG Road, South station approach road and Banerjee Road, on the rates fixed by the District Level Purchase Committee.

However, the landowners who objected to the rates of the DLPC have already said that they would approach the court if the authorities would not a give fair price to their land. Meanwhile, the revenue authorities have initiated steps to acquire the remaining land as per the Land Acquisition Act.

“Currently the price has been fixed between Rs 38 lakh and Rs 40 lakh per cent on these stretches. We have completed the initial procedures for acquiring the land, and expect to start the acquisition soon,” said an official at the LA section. The row over the proposed width of the metro rail at Vyttila-Pettah stretch is yet to be resolved.

Some landowners have demanded that width be reduced from the proposed 30 m to 26 m in some portions along this stretch.

The urgency clause will be invoked to acquire 32 hectares for the project. The land acquisition department will draft the proposal and submit it to the revenue commissioner in two days, sources said.

Project hinges on JICA loan

Now that the union cabinet has given the go-ahead for the Kochi Metro, it has paved the way for the Kochi Metro Rail Ltd in going ahead with the Rs 2,170-crore loan from Japan International Co-operation Agency (JICA). This would cover 44 per cent of the project cost.

According to KMRL officials, the JAIC loan at 1.3 per cent interest has to be repaid in 30 years and there is a 10-year moratorium.

As per plans, the loan would be availed of only when the rail works start. The centre and state together would be chipping in with Rs 1,507.46 crore.

The state government has allocated Rs 672 crore for land acquisition and Rs 98 crore for land Development. The Centre will forego Rs 497 crore and the state, Rs 237.33 crore, by way of tax exemption.

As funds have already been allocated from the central and state governments towards preparatory works, the Japanese loan would be needed only for equipment and train-running works.

KMRL sources said that there were no conditionalities for the loan and the central government would stand guarantee for it. JICA had lent financial support for another major afforestation project in the state at Attappady.

However, there were issues regarding interest rates which would not be an issue in the case of Kochi Metro.