CHENNAI: The Second Phase of Chennai Metro Rail is estimated to cost around Rs 80,000 crore as per the revised detailed project submitted to the Centre by Chennai Metro Rail. This is Rs 5,000 crore less than the earlier proposal submitted by the State government in March 2017 for the Centre’s clearance.
The detailed project report submitted in March 2017 had estimated Rs 85,047 crore as the cost of the Second Phase of Chennai Metro, which includes three corridors — Madhavaram-Siruseri, Chennai Mofussil Bus Terminus (CMBT)-Lighthouse and Madhavaram-Sholinganallur.
It is learnt that once the State submitted its proposal in March this year for approval and funding from Japan International Cooperation Agency, the Union Ministry of Housing and Urban Affairs urged the State government in August 2017 to re-examine the Phase II proposal by taking into account the New Metro Rail Policy of 2017 and the National Transit Oriented Development Policy and the appraisal framework formulated by the Union government.
The new Metro Rail Policy makes the public-private partnership component mandatory for availing Central assistance for new Metro projects. Private investment and other innovative forms of financing of Metro projects have been made compulsory to meet the huge resource demand for capital intensive high capacity Metro projects.
The new policy mandates Transit Oriented Development (TOD) to promote compact and dense urban development along Metro corridors since TOD reduces travel distances besides enabling efficient land use in urban areas.
Under the policy, States need to adopt innovative mechanisms like Value Capture Financing tools to mobilise resources for financing Metro projects by capturing a share of increase in the asset values through ‘Betterment Levy’.
It is learnt that a high-powered committee chaired by the Chief Secretary has asked Chennai Metropolitan Development Authority to incorporate the new Transit Oriented Development Policy of Centre and study will be taken up under the Second Phase of metro rail corridors in detailed project report under the master plan within a year.
Similarly, the Chennai Comprehensive Transportation Study that was published in August 2010 has been considered as Comprehensive Urban Mobility Plan (CUMP) for Chennai Metropolitan Area.
However, CUMP will be updated incorporating the expanded corporation limits, 2011 population census and recent infratsructure or development proposals within one year.
Scaled down expenditure
The initial Detailed Project Report for Phase II of Chennai Metro estimated the project to cost D85,047 crore
The project cost has been reduced by D5,000 cr as the revised DPR puts the cost of the project worth D79,961 crore
The DPR was revised after Centre asked the State government in August 2017 to re-examine the Phase II proposal by taking into account New Metro Rail Policy of 2017
Number of corridors in the second phase of Chennai Metro — Madhavaram-Siruseri, Chennai Mofussil Bus Terminus (CMBT)-Lighthouse and Madhavaram-Sholinganallur