Union Cabinet approves first phase of Chennai Metro Rail Project

The Union Cabinet today approved the Chennai Metro Rail Project Phase-I, comprising two corridors, covering a length of 45.046 kilometres at a cost of Rs.14,600 crore. This will be executed through 'The Channai Metro Rail Corporation Limited, a joint ownership SPV of Government of India and State Government of Tamilnadu, on a 50-50 equity basis.

The Detailed Project Report (DPR) for this was done by Delhi Metro Rail Corporation Ltd. for setting up of a world class state of the art Metro Rail System in Chennai on the pattern of Delhi Metro. The total length to be covered was 45.046 kms. in 2 corridors [23.085 kms (undergorund 14.300 kms + 8.785 kms)] from Washermanpet to Chennai Airport with total stations 18 and [21.961 kms (underground 9.695 kms. + 12.266 kms)] from Chennai Central to Saint Thomas Mount.

This project is to be implemented through a joint ownership SPV of Government of India and Government of Tamilnadu namely Chennai Metro Rail Corporation Ltd. (CMRCL) on 50-50 equity basis on patterns of DMRC.

Out of the 30% equity funding 15% will be provided by Govt. of India and 15% from Govt. of Tamilnadu. 10.78% of the project cost would be funded through Subordinate Debt, out of which 5.00% will be provided by Govt. of India and 5.78% by Govt. of Tamilnadu. 59.22% of the fund will be raised through Senior Term Deposit.

The project is scheduled to be completed by 2014-15 and is expected to earn total revenue during the first year of operation i.e. 2014-15 estimated at Rs. 435.26 crore.

Source : Press Information Bureau

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