look news india
New Delhi, 05 October (Hindustan Reporter). The central government will finance about 65 per cent of the estimated cost of Rs 63,246 crore for the second phase of the Chennai Metro Rail project. The remaining 35 percent of the estimated cost will be borne by the state government. The Union Cabinet has given its approval this week as a 'Central Sector' project.
The finance ministry said in a statement issued on Saturday that the financing will include fully mandated debt of Rs 33,593 crore and equity and subordinated debt of Rs 7,425 crore. According to the ministry, loans taken from multilateral and bilateral development agencies will be treated as loans given to the central government. Funding for this will be provided directly to Chennai Metro Rail Limited (CMRL) from the Central Government budget. The responsibility of providing or arranging debt financing for the project was on the state government before the project was approved by the Centre. The Union Cabinet approval has freed up budgetary resources of the state government to the tune of Rs 33,593 crore to finance other development activities.
The Union Cabinet on Thursday approved the proposal of the Ministry of Housing and Urban Affairs for the second phase of the Chennai Metro Rail project, which includes three corridors. The completion cost of this project is Rs 63,246 crore. It is planned to be completed by 2027. The total length of the sanctioned lines of the project will be 118.9 km, with 128 stations. When its second phase is fully operational, Chennai will have a total metro rail network of 173 kilometers.