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N. Ramakrishnan

Chennai , Feb. 4

THE Commerce Ministry has sanctioned Rs 12.5 crore to develop the IT corridor in Chennai - from the Madhya Kailash junction, Adyar, to Siruseri. A number of IT companies have their software development centres along this 22-km stretch. The Tidel software park is located here and the State Industries Promotion Corporation of Tamil Nadu is developing an IT park at Siruseri.

The Ministry's aid to the project comes under its Assistance to States for Infrastructure Development for Exports scheme.

The total cost of the project from the Madhya Kailash junction to Siruseri, which will be the first phase of improving the road, is Rs 84.41 crore. The Tamil Nadu Road Development Company (TNRDC), which is executing the project through a special purpose vehicle, has been allowed to borrow Rs 50.41 crore. The special purpose vehicle is called IT Expressway Ltd.

The Government has sanctioned Rs 21.5 crore as its contribution to the project. This money will be routed through the TNRDC. It will be decided later as to how the money given by the Government to the project will be treated - as loan or grant or subordinated debt. The Tamil Nadu Industrial Development Corporation, a State Government undertaking, and IL & FS have jointly promoted the TNRDC.

According to an order issued by the Government approving the project to improve the IT corridor, since the State Government's contribution to the project is to make it bankable, the amount given by it should be returned to the Government or to the IT Corridor Fund.

The project cost of Rs 84.41 crore includes the cost of constructing toll plazas and contingencies and supervision costs. The estimated cost of land acquisition, Rs 43 crore, has not been included in the project cost.

The TNRDC has invited bids from contractors to execute the project. It hopes to award the tenders by April and complete the work in a year from then. The project involves upgrading the existing stretch into a six-lane carriageway, providing a two-metre wide median and installing road signs.

The Government Order says the toll rates shall be fixed depending upon the final cost of the project. In the second phase, the stretch from Siruseri to Mahabalipuram will be upgraded.

The Government has also constituted an empowered committee headed by the Development Commissioner and Finance Secretary to monitor the progress of the project. The committee consists of secretaries to the Highways and Industries departments, Commissioner of Land Administration, and the Chief Executive Officer, TNRDC.

Traffic planners are also working on how to relieve the congestion at the Madhya Kailash junction, which is a major bottleneck leading to long wait for road users.

More Stories on : Infrastructure | Tamil Nadu

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