The Hindu : Front Page : Assistance for metro rail project cleared

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Saturday, Aug 09, 2008
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Assistance for metro rail project cleared

S. Vydhianathan

Loan pact to be signed in September
Government nod for DPR in seven days

CHENNAI: The Japanese government has given its approval for concessional assistance to the Chennai Metro rail project and the loan agreement is expected to be signed in September this year.

The total project cost is estimated at Rs. 11,124 crore, of which the Japanese loan component will be Rs. 8,646 crore and the first instalment will be Rs. 853 crore. The State and the Central governments will be sharing the balance cost.

The Planning Commission has given in-principle approval for the project and the approval for Central funding is expected soon. It will take at least six years for the project to be completed from the date of commencement of the work.

According to Chennai Metro Rail Company sources, the detailed project report, prepared by the Delhi Metro Rail Corporation, was approved by the State government in just seven days. A special purpose vehicle was formed in one month and the project was presented for financial assistance. Another feature of the project was that special steps had been taken to provide liberal financial assistance to about 450 slum dwellers, who might be resettled as a result of the project. All displaced persons would be given ownership flats as well as cash assistance and skill training. It had been decided that the land required for the project would be acquired mostly by negotiation, paying a fair compensation as per market conditions.

The project report envisages two initial corridors. The first corridor is from Washermenpet to the Chennai airport via Broadway (Prakasam Road), Chennai Central Station, Ripon Building along Cooum River, Tarapore Towers, Spencers, Gemini, Anna Salai, Saidapet and Guindy and the second corridor will be from Chennai Fort to St. Thomas Mount via Chennai Central, along EVR Periyar Salai, Vepery, Kilpauk Medical College, Aminjikarai, Shenoy Nagar, Annanagar East, Anna Nagar Tirumangalam, Koyambedu, CMBT, along the Inner Ring Road, Vadapalani, Ashok Nagar, SIDCO and Alandur.

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