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

The Hindu - - CHENNAI - Spe­cial Cor­re­spon­dent

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.

SPE­CIAL AR­RANGE­MENT ■

An­other phase: Chief Min­is­ter has asked the PM to di­rect the Min­istry of Hous­ing and Ur­ban Af­fairs to sanc­tion Phase II as was done for Phase I.

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