G.O. Ms. No. 24, Implementation of Chennai Metro Rail Project, 2007
The Planning, Development and Special Initiatives Department issued Government Order G.O. Ms. No. 24 on 22 February 2007, directing that the Chennai Metro Rail Project be owned and operated through a special purpose vehicle as a public sector undertaking. The Central and State Governments together must hold at least 51 per cent of its equity, while outsourcing or public-private participation may be considered for minor project components.
What the government decided
The Planning, Development and Special Initiatives Department issued Government Order G.O. Ms. No. 24 on 22 February 2007. It establishes the ownership model for planning and implementing the Chennai Metro Rail Project.
The government directed that the project should be owned and operated through a special purpose vehicle formed as a public sector undertaking. The decision followed consideration of a proposal from the Delhi Metro Rail Corporation, the experience of the Delhi Metro, public sector and public-private participation models, and practices relating to metropolitan railway projects in India and abroad.
Ownership structure
Government Order G.O. Ms. No. 24 sets the following framework:
- The Central Government and State Government together must own at least 51 per cent of the equity in the special purpose vehicle.
- Their combined ownership may rise to 100 per cent.
- The precise equity level was left to be decided later, based on financial needs and financial structures.
- Overall ownership of the special purpose vehicle must remain in the public sector.
The Delhi Metro Rail Corporation had recommended following the Delhi model, under which the State and Central Governments would own the special purpose vehicle.
Scope for private participation
Government Order G.O. Ms. No. 24 permits the special purpose vehicle to consider outsourcing or public-private participation for minor components of the Chennai Metro Rail Project. Examples listed in the document include:
- Stations.
- Shopping areas.
- Advertising rights.
- Parking spaces.
The list is not presented as exhaustive. The document does not transfer overall ownership of the Chennai Metro Rail Project to private participants.
Relevance to property owners and buyers
Government Order G.O. Ms. No. 24 concerns the institutional ownership and operation of the Chennai Metro Rail Project. It does not state any land acquisition procedure, property restriction, compensation arrangement, land-use change, rate or fee.
A property buyer or owner cannot use this document alone to determine whether a particular property is affected by the Chennai Metro Rail Project. Its direct property-related relevance is limited to confirming that shopping areas, stations and parking spaces could be considered for outsourcing or public-private participation by the publicly owned special purpose vehicle.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does G.O. Ms. No. 24 acquire any private land for Chennai Metro Rail?
No land acquisition is stated in the document. It deals with the ownership and operating structure of the Chennai Metro Rail Project.
Can the Chennai Metro Rail Project be entirely privately owned?
No. The Central and State Governments together must hold at least 51 per cent of the special purpose vehicle's equity, and overall ownership must remain in the public sector.
Can private businesses participate in stations or commercial areas?
The special purpose vehicle may consider outsourcing or public-private participation for minor components, including stations, shopping areas, advertising rights and parking spaces.
Does the document identify which properties will be affected by Chennai Metro Rail?
No. Government Order G.O. Ms. No. 24 does not identify individual properties, project boundaries or land parcels.
