The state government’s doubts regarding the financial viability of the East-West Metro project were dispelled on Friday by project consultants Delhi Metro Railway Corporation.

In a meeting with finance secretary Samar Ghosh and transport secretary Sumantra Chowdhury, Delhi Metro Railway Corporation (DMRC) joint general manager (finance) S. Sivamathan rolled out a set of figures to explain the viability of the Rs 4,195crore project.

“They made a presentation on financial viability of the project. We will study the figures before taking a decision,” said transport secretary Sumantra Chowdhury after the meeting. The project aims at connecting Howrah and Salt Lake through a tunnel under the Hooghly.

The authorities are considering two options — a loan from Japan Bank for International Co-operation (JBIC) or from the market.

According to DMRC estimates, in case JBIC offers a loan at an interest rate of 1.31 per cent per annum, the project will have a positive cash balance of Rs 3,133crore at the end of 2043-44. If the project is implemented with a market loan — at 7.5 per cent rate of interest — the cumulative cash balance at the end of 2043-44 will be Rs 2,032crore.

“We expect the JBIC to clear the loan. They are working out the cost-benefit analysis to take a decision,” said Chowdhury.

The state government will try to raise 39 per cent of the cost by borrowing from JBIC. Joint equity by the state and the Centre will generate 40 per cent, the state government will bear another 7 per cent through subordinate debt and the remaining 14 per cent will come from property development.

The DMRC has proposed a minimum fare of Rs 8 for the first two kilometres, which will go up to Rs 19 for the maximum slab.