Ensure JV for CMRL phase-II: Chief Minister Edappadi K Palaniswami urges PM Modi
CHENNAI: Chief Minister Edappadi K. Palaniswami has urged Prime Minister Narendra Modi to ensure equal participation by State and Central governments in executing the Chennai Metro rail phase-II project costing about Rs 69,180 crore.
Contending that the Japan International Co-operation Agency (JICA) has already approved a loan of Rs 20,196 crore and agreement for the first tranche of loan has also been signed, the CM said the Department of Economic Affairs has also recommended funding for this project to the tune of Rs 10,351 crores from ADB, AIIB, NDB and World Bank.
“I request the Prime Minister to direct the Ministry of Housing and Urban Affairs to sanction Phase II of Chennai Metro Rail Project under 50:50 joint venture partnership between Government of India and Government of Tamil Nadu, as was done for Phase I,” Mr. Palaniswami said in a letter to the PM on Sunday.
Referring to his earlier letter addressed to Mr. Modi on Jan. 21, he said the Phase I of Chennai Metro Rail (CMRL) project was implemented on a 50:50 joint venture partnership between the Centre and State governments. “This phase has now been completed entirely, though passenger services were functioning since 2015. The last underground section of 10 km was inaugurated today,” the CM said.
The phase II project was approved by Tamil Nadu government and recommended to the Central government for approval in April 2017. After the introduction of New Metro Rail Policy by Government of India, the State government revised the Detailed Project Report (DPR) by updating the Comprehensive Mobility Plan (CMP) and alternative analysis for mode of transport for a length of 118.9 km and it was sent to the Union Housing & Urban Affairs Ministry with its approval and recommendation for due consideration under the 50:50 joint venture partnership on Jan.11.
Out of the total project cost of Rs 69,180 crores, the land cost and State taxes amounting to Rs 13,723 crores is being met by the State government and the balance cost of Rs 55,457 crores has to be funded by Government of India (20 %), Government of Tamil Nadu (20 %) and the funding agencies (60 %) respectively. Hence the GOI may be to the order of '11,100 crores spread over 6 years.
