CHENNAI: The State government has urged the Centre to reconsider the shareholding pattern for the second phase of the Chennai Metro Rail project at a ratio of 50:50, as was done in the case of Phase-I. The Centre has suggested that it will provide only 10 per cent of cost as grant instead of giving 15 per cent as share capital.
In a letter submitted to Union Home Minister Amit Shah, who laid the foundation stone for Phase-II of the Metro Rail project here on Saturday, Chief Minister Edappadi K Palaniswami said the State government has approved Phase-II of the project at a cost of Rs 61,843 crore.
“Since the contribution of Government of India (GoI) in grant will affect the present share holding pattern and such grant is considered revenue expenditure, we have been requesting the GoI to consider the support as share capital, which is taken as capital expenditure, with a sharing pattern of 50:50 between the Centre and State,” the Chief Minister said in his letter.
“I request your intervention for early approval of the project with participation of GoI in Chennai Metro Rail Phase-II project with 50:50 equity sharing model, as was done for Phase-I. I also request you to get the revised cost of Metro Rail Phase-I sanctioned at the earliest,” he said