G.O.Ms.No.2, Chennai Metro Rail Project Phase-I Revised Project Completion Cost, 2017
The Government of Tamil Nadu, Planning, Development and Special Initiatives Department, issued G.O.Ms.No.2 dated 12 January 2017, approving a revised completion cost of Rs.19,058 crores for Phase-I of the Chennai Metro Rail Project. It revises the earlier project cost, sets out the updated funding pattern and recommends that the Government of India sanction the revised cost and release additional equity and subordinate debt.
What the approval covers
G.O.Ms.No.2 dated 12 January 2017 of the Government of Tamil Nadu, Planning, Development and Special Initiatives Department, concerns Phase-I of the Chennai Metro Rail Project. Phase-I covers 45.046 kilometres in two corridors and is implemented through a joint ownership arrangement involving the Government of India and the Government of Tamil Nadu.
The project corridors were described as Washermanpet to Chennai Airport and Chennai Central to St. Thomas Mount. The starting point of the second corridor had earlier been changed from Chennai Fort to Chennai Central.
Main decisions
G.O.Ms.No.2 approves the following:
- A revised project completion cost of Rs.19,058 crores during 2016-17.
- An increase of Rs.4,458 crores over the project cost of Rs.14,600 crores used in the annexure comparison.
- The revised funding pattern shown in Annexure-B.
- A recommendation to the Government of India, Ministry of Urban Development, to sanction the revised cost and release funds through additional equity and subordinate debt.
The revised cost had been proposed by Chennai Metro Rail Limited and approved by the High Power Committee before the State Government issued its approval.
Major cost changes
Annexure-A to G.O.Ms.No.2 gives component-wise changes. Key items include:
- Cost of land increased from Rs.855 crores to Rs.2,629 crores.
- Alignment and formation increased from Rs.3,190 crores to Rs.4,269 crores.
- Station building costs increased from Rs.4,043 crores to Rs.4,893 crores.
- Foreign exchange fluctuation added Rs.643 crores.
- Development of space added Rs.614 crores.
- Central taxes decreased from Rs.1,630 crores to Rs.730 crores.
- Traction and power supply, rolling stock and security costs also decreased.
Funding and relevance to landowners
Annexure-B assigns revised equity of Rs.2,858 crores each to the Government of India and the Government of Tamil Nadu. It also provides Rs.3,966 crores as Government of Tamil Nadu subordinate debt for land, rehabilitation and resettlement, and development of space. Government of India pass-through assistance from the Japan International Cooperation Agency remains Rs.8,646 crores.
G.O.Ms.No.2 is a project cost and funding approval. Although it includes land and rehabilitation costs, it does not identify individual properties, acquisition areas, owners or changes to land title.
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Common questions
Does G.O.Ms.No.2 acquire my property for the Chennai Metro?
G.O.Ms.No.2 does not identify or acquire any individual property. It approves the revised project cost and includes funding for land, rehabilitation and resettlement, and development of space.
What revised cost did the Tamil Nadu Government approve?
The Government of Tamil Nadu approved a revised Phase-I completion cost of Rs.19,058 crores.
Why is the land component important in the revised cost?
The project cost for land increased from Rs.855 crores to Rs.2,629 crores. The revised funding pattern also assigns Rs.3,966 crores in Government of Tamil Nadu subordinate debt for land, rehabilitation and resettlement, and development of space.
Did the State approval itself release Government of India funds?
No. G.O.Ms.No.2 recommends the revised completion cost to the Government of India, Ministry of Urban Development, for sanction and release of funds through additional equity and subordinate debt.
