Expected to be ready by 2014-15.
The Cabinet Committee on Economic Affairs has approved the Rs 14,600crore Chennai Metro Rail Project at a meeting held in New Delhi on January 28. The project is expected to complete in 2014-15 and will be implemented by Chennai Metro Rail Limited, a special purpose vehicle formed on the lines of Delhi Metro Rail Corporation with equal equity participation from central and state governments.
Around 59 per cent of the cost will be met by concessional Official Development Assistance (ODA) loan from the Government of Japan. The loan agreement was signed between the Centre and the Government of Japan on November 21, 2008, in Tokyo.
The Central government will contribute 15 per cent of the project cost as equity and 5 per cent as subordinate debt. The remaining share of the cost (21 per cent) will be met by the state government in the form of equity (15 per cent) and subordinate debt (6 per cent).
The cost of the project includes escalation, central taxes and interest during the period of construction while excluding state taxes and value of vacant state government land.
According to an official release, the project has set a record amongst contemporary projects as the fastest in reaching financial closure, by securing Japanese government funding in just 12 months and Centre’s funding in 14 months, whereas this process took more than two and a half years in other cities.
As part of the project, two corridors with a combined length of 45 km will be constructed in the first phase, of which 24 km will be underground while 21 km will be elevated. Corridor I, with a length of 23.1km (14.3 km underground and 8.8 km elevated), will run from Washermanpet to the airport via Anna Salai.
Corridor II, with a length of 22 km (9.7 km underground and 12.3 km elevated), will run from Chennai Central to St Thomas Mount via Koyambedu. The portions of Corridor I from Washermanpet to Saidapet on Anna Salai, and Corridor II on Periyar EVR Salai and Anna Nagar 2nd Avenue, will be underground and the remainder elevated.
