The Hindu Business Line : TN plans urban project-III with World Bank aid

THE Tamil Nadu Government plans to take up the third phase of an urban development project with World Bank assistance. It also will get a detailed project report prepared for a Rs 5,086.85-crore metro rail project for Chennai.

Presenting the 2005-06 Budget in the Assembly on Wednesday, the Finance Minister, Mr C. Ponnaiyan, said the Government had taken up with the World Bank the sanction for the Tamil Nadu Urban Development Project-III with a larger outlay of Rs 1,650 crore covering both the Chennai metropolitan area and other urban local bodies in the State. "We hope to obtain the sanction of the World Bank for this project shortly," he said.

The Tamil Nadu Urban Development Project-II launched at a cost of Rs 750 crore came to a close in November 2004. This projected included substantial capacity building for design and implementation of projects and introduction of modern methods of accounting and e-governance in urban local bodies. Civic projects costing Rs 675 crore for water supply, sanitation, internal roads, solid waste management were taken up.

Mr Ponnaiyan said implementation of the Chennai Metropolitan Area Development Plan would continue in 2005-06 with an outlay of Rs 2,054.09 crore. The Chief Minister had announced a Chennai Forever Initiative. A suitable forum would be created to enable a continuous dialogue on the nature of improvements to be undertaken within a specific timeframe with people's participation.

The Minister said a detailed feasibility report had been prepared for a metro rail in Chennai. A detailed project report would be prepared to implement the project.

The Budget had provided seed money assistance of Rs 200 crore from the Infrastructure Development Fund to the Chennai Metropolitan Development Authority to leverage funds for financing such infrastructure in the Chennai metropolitan area.

Under the proposed TNUDP-III, a special component of Rs 540 crore for road and traffic improvement in Chennai is planned.

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