The union cabinet chaired by Prime Minister Narendra Modi on Wednesday approved an investment of Rs 3,770 crore for development of the first phase of the Chennai Metro Rail project. The 9.051 km corridor between Washermanpet and Wimconagar will be executed by Chennai Metro Rail Ltd (CMRL), the existing special purpose vehicle (SPV) of the centre and the state government with equal share of equity.
"The project is scheduled to be completed by March 2018. This extension will provide improved access to public transport for dense population comprising predominantly industrial workers to move towards the central business district of the city for work," said an official statement. The centre will have a share of Rs 713 crore in the total project cost while the state government's share would stand at Rs 916 crore.
The state's share includes Rs 203 crore as cost of land acquisition and resettlement and rehabilitation (R&R). The balance amount of Rs 2,141 crore for the project would be sourced as loan from domestic or multi-lateral funding agencies. The project is estimated to have a ridership of 160,000 passengers per day in the first year of operation.