Chennai Metro Rail project Phase-I to be completed by 2017 end

Discussions to raise funds from JICA for Rs 3,700 crore extension project on

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The Rs 19,000 crore Phase-I of the Chennai Metro Rail Project, covering a length of 45 kilometers, is expected to be completed by December, 2017, said a senior official from Chennai Metro Rail Ltd. The company is changing the model of contract a little from the proposed Phase-I extension project of nine kilometer, to reduce the risk of delays due to some issues faced by contractors.

Phase-I of the project, which had an initial investment outlay of over Rs 14,600 crore, has seen an increase in investment up to Rs 19,000 crore, owing to various issues including the issues in contract, price escalations and variations in the project after the conception.

The phase is expected to be completed by December next year, said a senior compant official requesting anonymity.

It is also tweaking the model it has implemented in Phase I, under which the responsibility of both design and building vested with the contractor, making their job riskier. It may be noted that the works, awarded to a joint venture between Gammon India and Russian contractor Mosmetrostroy, for design and build of a stretch of underground operations, were delayed after the Russian partner allegedly abandoned the project abruptly.

The official said that the Union Urban Development Ministry is in consultation with various metro rail companies in the country to bring in a solution to such delays in the projects. The ministry is looking at bringing in standards on sourcing of trains, telecom, signal and construction system materials for the metro rail projects.

The company has decided to take the onus of designing, which would bring matters under its control, and reduce the risk of the contractor.

The Japan International Cooperation Agency (JICA) officials are expected to visit the City next month to discuss with the government on the extension project. Out of the Rs 3,700 crore proposed investment for the project, around Rs 2,100 crore is expected to come from JICA.

The Phase-II project of the company, which would expand the reach of Metro Rail to over 100 kilometers with an exstimated cost of around Rs 44,000 crore, is expected to start later.

Tamil Nadu Chief Minister Jayalalithaa had inaugurated the operations of Chennai Metro Rail in June 2015 and the company has started operations in June, 2015 in a stretch of around 10 kilomters, while one more stretch is in the final stages of starting operations. At present, CMRL is getting an occupancy of around 10,000-12,000 people a day in the operational train. He said that with the tariff will decline with the increase in volume. Once the 45 kms covered, the company aims to transport 250,000 people in the beginning and gradually take it up to 700,000-750,000 passengers.