Funds have not been released this year for the railway network being built in Chennai by Chennai Metro Rail as the State government has not signed the Memorandum of Understanding, the Rajya Sabha was informed on Thursday.
Replying to supplementaries in Question Hour, Minister of State for Urban Development Saugata Roy said Chennai Metro is a special purpose vehicle which is funded by the Tamil Nadu government and the Government of India.
The Union government has allocated Rs. 652 crore for Chennai Metro in 2010-11 but no funds have been released as the MoU has not been signed, he said.
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“The Memorandum of Understanding between Tamil Nadu government, the Government of India and Chennai Metro has not yet been signed,” he said.
“We urge the Tamil Nadu government to sign the MoU so that the Government of India can release funds,” he said.
The Union government, he said was committed to paying 20 per cent of the project cost.
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During past three years, the Centre has given Rs. 152.79 crore to the project while the State government has contributed Rs. 1,050 crore. This year, the State government is to provide Rs. 600 crore.
“The total funds utilised so far for this project is Rs. 306.24 crore as on July 31, 2010,” he said adding the project is scheduled for completion by 2015.
“In the initial phase, the State government pays more money because land acquisition has to be done which is the job of the State government,” he said.