The final draft of the agreement between Delhi Metro Rail Corporation (DMRC) and the Kochi Metro Rail Ltd (KMRL), which is going to be inked soon, is set to raise eyebrows with the former having its way on most of the crucial points in the ambitious Rs 4,238-crore project.
The notable aspects of the agreement, a copy of which is in the possession of Express, other than the technical side, which has been submitted for the scrutiny of the state government, is that the statement of accounts of utilisation of funds in the project will be only in a consolidated/abstract form and individual vouchers will not be submitted.
The same will be audited and certified by DMRC internal auditors alone. KMRL is barred from interfering in DMRC’s technology design and specifications for the civil works as well and also various systems.
Clause 6 of the draft agreement says that strict confidentiality of the drawings and documentation of the project should be adhered to. That DMRC is keen to have a major role in the project other than consultancy, execution and supervision (subject to a separate agreement), has also been given an official stamp in the agreement.
The DMRC shall provide its services for financing the project and visit the office of the funding agencies, including banks, with project viability reports. The costs incurred, including travelling charges, will be borne by KMRL, states Clause 4 (k) of the agreement.
To put KMRL and the state govt on the defensive, the agreement provides slapping 15 percent interest on funds sourced by DMRC on its own in the event of non-allocation of funds in advance every three months. If there is a delay of more than a month for fund allocation, DMRC will suspend the work unilaterally, as per the clause.
The department charges to be levied by DMRC on KMRL on the total project cost will be six percent plus service tax on a quarterly basis and these have to be paid in advance in 16 equal instalments. Apart from the project cost, DMRC will have to be paid detailed design/proof check consultancy charges subject to a maximum of `40 crore. The cost of likely litigation is also an add-on to the project cost.
While the DMRC would invite tenders for execution of the project, KMRL will have the right to appoint a member to the tender panel only if the estimated value is Rs 20 crore or above. The decision of the DMRC will be final in the case of a dispute. In other words, KMRL will be more or less a mere spectator.
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