CM pushes for Central funding for Metro phase II

Writes to Modi seeking 50:50 joint venture partnership, which will cost the Centre ₹11,100 crore

When Prime Minister Narendra Modi came down to launch the final stretch of Phase I of Chennai Metro, Chief Minister Edappadi K. Palaniswami used the opportunity to push for Central funding for Phase II as well.

At Tirupur, he briefed Mr. Modi about Phase II and sought 50:50 joint venture partnership, which would cost the Centre ₹11,100 crore over six years, sources said.

Later, an official release was issued giving details of the letter he submitted to the Prime Minister.

In the letter, the Chief Minister said that the State government had approved Phase II and sought the Centre’s approval in April, 2017.

After the introduction of New Metro Rail Policy by the Centre, the State 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. This was sent to the Ministry of Housing & Urban Affairs for consideration under the 50:50 joint venture partnership on January 11, 2019, he said.

Out of the total project cost of ₹69,180 crore, the land cost and State taxes amounting to ₹13,723 crore would be met by the State government and the balance ₹55,457 crore has to be provided by the Centre, (20%), State (20%) and the funding agencies(60%) respectively.

Hence, the Centre may have to provide ₹11,100 crore spread over six years, the Chief Minister said.

Loan approved

Japan International Co-operation Agency (JICA) has already approved a loan of ₹20,196 crore and the agreement for the first tranche of loan has been signed. The Department of Economic Affairs has also recommended funding for this project to the tune of ₹10,351 crore from ADB, AIIB, NDB and World Bank, he said.

Mr. Palaniswami asked the Prime Minister to direct the Ministry of Housing and Urban Affairs to sanction Phase II under 50:50 joint venture partnership between the Centre and the State as was done for Phase I.

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Printable version | Mar 31, 2020 9:13:36 PM |

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