Extension of Corridor-1 of Chennai Metro Rail Phase-1 Project Memorandum of Understanding
The Government of India, represented by the Ministry of Urban Development, the Government of Tamil Nadu, and Chennai Metro Rail Limited entered into the Extension of Corridor-1 of Chennai Metro Rail Phase-1 Project Memorandum of Understanding on 2 September 2017. It sets out their responsibilities for financing and implementing the 9.051 kilometre Metro extension from Washermanpet to Wimco Nagar, including land acquisition, rehabilitation, resettlement and possible compensation through Transfer of Development Rights.
What the memorandum governs
The Extension of Corridor-1 of Chennai Metro Rail Phase-1 Project Memorandum of Understanding was entered into by the Government of India, represented by the Ministry of Urban Development, the Government of Tamil Nadu, and Chennai Metro Rail Limited on 2 September 2017. It records the principles, responsibilities and funding arrangements for extending Chennai Metro Rail Phase-1 from Washermanpet to Wimco Nagar.
The project covers 9.051 kilometres, comprising 2.379 kilometres underground and 6.672 kilometres elevated. The Government of India approved an estimated completion cost of Rs.3,770 crore through sanction letter No. K-14011/50/2010-MRTS-III dated 15 June 2016.
Implementation and financing
Chennai Metro Rail Limited is the executing agency and Special Purpose Vehicle. The Government of India and the Government of Tamil Nadu are joint promoters with equal equity holding.
Key financial provisions include:
- The Government of India and the Government of Tamil Nadu will each contribute Rs.508 crore as equity.
- Each government will provide Rs.205 crore as subordinate debt towards central taxes.
- The Government of Tamil Nadu will bear the complete cost of land acquisition, rehabilitation and resettlement, including escalation.
- Government of India financial support is limited to Rs.713 crore, excluding land acquisition, rehabilitation and resettlement, and State taxes.
- The Government of India will not waive central taxes or duties.
- Certain cost increases caused by price escalation, exchange rate variation, changes in scope, avoidable delay or essential items omitted from the Detailed Project Report must be borne by the Government of Tamil Nadu.
Land and property provisions
The Government of Tamil Nadu must expeditiously acquire land and properties identified along the alignment, remove encroachments and encumbrances, and hand possession to Chennai Metro Rail Limited. Land acquisition is not to become a reason for delay.
The memorandum also requires the Government of Tamil Nadu to:
- Facilitate compensation through Transfer of Development Rights instead of cash compensation for project land acquisition.
- Assist Chennai Metro Rail Limited with clearances and changes in land use, including commercial exploitation, subject to applicable laws.
- Allow Chennai Metro Rail Limited freedom to develop and use transferred land for its intended project use, subject to zoning, rezoning and applicable laws.
- Grant or arrange necessary approvals, consents, clearances and sanctions for implementation.
The source does not identify individual survey numbers, properties or affected owners.
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Common questions
Does the memorandum identify which private properties will be acquired?
No. It requires the Government of Tamil Nadu to acquire land and properties identified along the alignment, but the supplied text does not list survey numbers, parcels or owners.
Who must pay for land acquisition and rehabilitation?
The Government of Tamil Nadu must bear the complete cost of land acquisition, rehabilitation and resettlement, including escalation.
Can compensation be provided through Transfer of Development Rights instead of cash?
Yes. The Government of Tamil Nadu must facilitate a compensation mechanism using Transfer of Development Rights in place of cash compensation for project land acquisition.
Can Chennai Metro Rail Limited use acquired land commercially?
The Government of Tamil Nadu must assist with land use clearances and commercial exploitation intended to improve the financial sustainability of Chennai Metro Rail Limited. Any such use remains subject to applicable laws, zoning or rezoning, and the land's intended project use.
