The central government has given its nod for the Rs 14,600 crores Chennai Metro Rail Project. The decision was taken in the Cabinet Committee for Economic Affairs (CCEA), which met last evening (28^th January) in New Delhi.

 

A special purpose vehicle (SPV), Chennai Metro Rail Limited, will be established for implementation of the project. The SPV will be a 50:50 joint venture of both the Central and state governments on the line of DMRC. The project is expected to be completed in 2014-15.

 

The project’s estimated cost is around Rs 14,600 crores which includes escalation, central taxes and interest during the period of construction. But it doesn’t include state taxes and value of vacant state government land.

 

Around 59 per cent of the cost will be met by concessional Official Development Assistance (ODA) loan from the Government of Japan. On November 21, 2008 the loan agreement was signed between Indian and Japanese government at Tokyo

 

Out of the remaining 41 percent of the total projected cost, Central Government will contribute 20% and rest 21% will be provided by the state. Both governments will contribute 15 per cent of their share as equity and the remaining portions (5% in case of Center and 6% in case of state) as subordinate debt.