New Delhi: The devastating tsunami suffered by it notwithstanding, Japan would fulfill its commitment by funding 40 percent of the total cost of Delhi Metro's ambitious Phase-III project.

The 103.05-km Phase-III, which was cleared by the Empowered Group of Ministers on Mass Rapid Transit System on Tuesday, will have four new corridors and will be built at a cost of Rs 35,242 crore.

The Japan International Cooperation Agency (JICA), which partially funded DMRC's Phase-I and II projects, will provide Rs 14,097 crore -- 40 percent of the total cost -- as loan, according to the EGoM which cleared the proposal.

Though the JICA had informally communicated to Delhi Metro Chief E Sreedharan last year that it could fund the project, the devastating tsunami that hit Japan in March had cast doubts whether the Agency would fund Phase-III.

However, the Japanese Government conveyed to India in April that its assistance and partnership to infrastructure projects would continue as per plans.

While the Centre and Delhi Government will infuse Rs 7,497 crore, which is over 21 percent of the total cost, as equity, they will provide Rs 5,100 crore as interest-free subordinate debt for land acquisition and Central taxes.

"It also includes loan from Government of Japan (JICA) of Rs 14,097 crore (40 percent) and grant by DDA of Rs 1,500 crore (4.26 percent)," an official statement issued after the meeting said.

The Delhi Metro will raise Rs 1,586 crore (4.5 percent) through property development and Rs 5,462 crore (15.5 percent) through loans from financial institutions, the EGoM headed by Finance Minister Pranab Mukherjee decided.

The Phase-III is likely to be completed by 2012. The assurance about fulfilling their commitment on infrastructure projects in India was given by Japanese officials to the then Foreign Secretary Nirupama Rao when she visited Japan in April.

A team from JICA had also met senior officials of the Delhi Metro and discussed aspects related to the project in April.

Besides the Delhi Metro, Japan is assisting projects like Delhi-Mumbai Industrial Corridor (DMIC) and Dedicated Freight Corridor (DFC). It is also partially funding the Chennai Metro.

This would be the first time that the DDA will fund any Metro project.

The Phase-III, which will be completed by 2016, will have a total of 67 stations with 15 inter-change points that will facilitate free movement of people.

Delhi Metro, which currently has a network of 190 km, has already started preliminary work like conducting geo-technical survey, soil and other mandatory tests on all the proposed corridors to save time.

Tenders for certain corridors and constructing third bridge on the Yamuna River have already been floated. The Phase-III will kick off with the construction of a small stretch from Central Secretariat-Mandi House that is aimed at decongesting the over-crowded Rajiv Chowk station.

As part of its preliminary work, Delhi Metro has already completed staff allocation for the Phase-III project and has also appointed project Directors, Delhi Metro officials said.

The corridors on the Phase-III are -- Mukundpur to Yamuna Vihar, Janakpuri West to Kalinidikunj, Central Secretariat to Kashmere Gate and Jahangirpuri-Badli.

Japan was plunged into chaos after a devastating earthquake sent a tsunami crashing through areas along its east coast in March leaving more than 23,000 people dead or missing and causing an estimate loss of USD 300 billion.

(Agencies)