The meeting of the board of directors of the Delhi Metro Rail Corporation (DMRC), scheduled for Friday, is expected to be stormy as the agenda is the Metro project's Japanese collaborator, Overseas Economic Corporation Fund's (OECF) refusal to commit any further funds.

The OECF had committed an initial amount of Rs 470 crore but had only released Rs 100 crore. The DMRC discovered a problem when the OECF refused to release funds for emergency items for the rail corridor saying that it needed the Japanese government's clearance in view of the nuclear tests. Later, despite intervention from the Department of Economic Affairs for release of a second instalment, the Japanese government did not respond.

There are already sharp divisions between the DMRC, Delhi and theCentral governments over the funding strategy to be employed in case OECF pulls out.

DMRC managing director E Sreedharan was not available for comment and the next in command, DMRC director for projects and planning, C B K Rao said, `The agenda of the directors meeting is a secret document.' He, however, admitted that the meeting was called to discuss alternative funding patterns for the project.

Chief secretary Omesh Saigal, Officer on Special Duty (in-charge of metro project) S P Agarwal, DMRC Chairman and Secretary, Urban Development, Ashok Pahwa, Sreedharan, Transport Secretary Virendra Singh and a representative from the Railway Board will be among the officials present at the meeting.

The Delhi government is likely to express its inability to continue with the project for the lack of funds. Anticipating OECF's pull-out, a whole section has been chopped off and a modified plan of the metro rail has been proposed.

The first phase of the project is the Shahdara-Tis Hazari section divided into themetro (underground) and surface corridor. While the metro corridor stretching from Delhi University to Central Secretariat consisting of 11 km has not been touched, the 19.3-km-long Subzi Mandi to Holambi Kalan corridor of the surface corridor may be dropped. The Shahadra to Nangloi section will now be till Barwala. In other words, the 55.3-km-long project has been cut to only 39 km long.

As per the funding plan of the Mass Rapid Transit System whose first phase is expected to be commissioned by March 2005, the Government of India and the Delhi Government were each to have a 15 per cent share in generating funds.

The OECF was to finance about 56 per cent of the funds as a soft loan. The rest was to be met through interest-free subordinate debt towards land cost and property development.

In discussions with the DMRC, the OECF hinted that it will not consider financing anything that exceeds the first amount released, that is, Rs 100 crore. The OECF has been asked to state its stand on the project so thatthe DMRC can consider alternative funding proposals.

Another issue to be discussed during the meeting is the proposal to change the tracks from broad gauge to standard gauge.