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Exclusive | No plans of Delhi Metro IPO as co not yet profitable, says MD Mangu Singh

Loans taken from JICA for Phase 1, 2 and 3 are being paid off as per schedule, without any default, Singh said.

Delhi Metro Rail Corporation (DMRC) has no plans of going public as the company is still negative on the bottom line, said Managing Director Mangu Singh in an exclusive interview with Moneycontrol.

"As far as going public is concerned, I don't think there can be a situation. DMRC's account is not on a profit note. We are still on the negative. If you go to the public with a loss on the balance sheet, nobody will subscribe," he added.

Asked if Japan International Cooperation (JICA) is funding Phase 4, he said that around 55 percent funding for the 108-km network will be from JICA and 45 percent will be generated locally with the two governments supporting it.

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The cost of the three corridors (on the network) sanctioned is approximately Rs 25,000 crore. The two governments extend around 20 percent each, while the balance 4 to 5 percent comes from internal resources of DMRC and some funding by DDA.

When asked whether the previous debt from JICA, which is in the form of soft loans has been paid off, he said that the loan from JICA for Phase 1, Phase 2 and Phase 3 is on soft terms.

"It has a long term repayment period. Loans are for a 10-year moratorium and 30-year repayment period. The first loan was taken in 1998 and the first repayment became due in 2008. Since 2008 onwards, we are repaying the loan that is due.  We have not defaulted and the loan will go on until 2038," he said.

"It is not a question of whether we have repaid it fully or not. We are paying as per the schedule as agreed," he pointed out.

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First Published on Nov 22, 2019 07:44 am
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