Chennai, India (Urban Transport News): In a major push to Chennai's most ambitious metro project, the Government of Tamil Nadu has allocated Rs 3,100 crore in its Budget for 2020-21 for construction of Phase II of Chennai Metro Rail project spanning across 118.9 km. Apart from this, the state government has also asked Centre to approve funding for the project and provide 50% equity share capital in line with the phase I of the Chennai Metro Rail project.
"In the budget estimates for 2020-21, a sum of Rs 3,100 crore has been allocated for the Chennai Metro Rail Project as share capital assistance, subordinated debt, and pass-through loan assistance", said O Panneerselvam, Deputy Chief Minister of Tamilnadu. Last year in the 2019-20 budget, the government had allocated Rs 2,681 crore for the phase-2 project of the Chennai Metro Rail project as share capital and debt.
The Japanese agency Japan International Co-operation Agency (JICA) is also funding Rs 20,196 crore for the construction of 52.01km long stretch from Madhavaram to Sholinganallur and from Madhavaram to Chennai Mofussil Bus Terminus (CMBT). According to the Chennai Metro, the detailed designs of the project are ready and construction work on the stretch will begin shortly.
Apart from JICA, the state government has also signed loan agreement with other multilateral agencies including Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and New Development Bank to get financial assistance for the construction of the remaining stretches of phase II from CMBT to Sholinganallur, Sholinganllur to SIPCOT, Siruseri and from Light House to Poonamallee bypass.
"Chennai now has a fully functional metro rail system but to derive the benefits of a modern mass transit system, it is essential that they reach of the network is further extended. Hence, the government accords high priority to the speedy implementation of the three metro rail corridors of a total length of 118.9km, identified in phase-2 of the Chennai Metro Rail Project", said Panneerselvam, reported by TOI.