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TN CM seeks equal participation from Centre for Chennai Metro Rail Phase-II project

Our Bureau Chennai | Updated on November 21, 2020 Published on November 21, 2020

Edappadi K Palaniswamy, CM, Tamil Nadu

Also sought financial assistance for setting up industrial parks in Tamil Nadu

Tamil Nadu Chief Minister Edappadi K. Palaniswami has sought the help of Union Home Minister Amit Shah in getting approval for equal equity participation between Centre and State for the Chennai Metro Rail Phase-II project, and financial support for setting up industrial parks in Tamil Nadu. Shah is on a two-day visit to Chennai (on Saturday and Sunday) to launch various infrastructure projects worth over Rs 61,000 crore.

The Chennai Metro Phase-II project with a total length of 118.9 km with estimated completion cost of Rs.61,843 crore has been approved by the Tamil Nadu government. The Centre had suggested to provide only 10 per cent cost as grant instead of providing 15 per cent as share capital.

Since the contribution of Centre as grant will affect the present shareholding pattern and such grant is also revenue expenditure, the State government has been requesting the Centre to consider the support as share capital, which is taken as capital expenditure with a sharing pattern of 50:50 between Centre and State.

“I request your kind intervention for early approval of the project with participation of Government of India in Chennai Metro Rail Phase-II project with 50:50 Equity Sharing Model, as was done for Phase-I Project. I also request you to kindly get the revised cost of Chennai Metro Rail Phase-I Project, which is now under examination by the Ministry of Housing & Urban Affairs, sanctioned as early as possible,” Palaniswami urged Shah.

The CMR Phase-I covering 45 km is fully operational from February 10, 2019. The Phase-I Extension of Chennai Metro Rail Project covering 9 km is under construction and is expected to be commissioned in January 2021.

On the industrial parks, Palaniswami said the State government has conveyed its willingness to set up mega textile parks and identified two sites - one in Dharmapuri District and another in Virudhunagar District. Adequate land and necessary infrastructure are available in the above sites.

Similarly, the State has proposed to set up a Bulk Drug Park and Medical Devices Park near Chennai. Necessary proposals have been sent to the Department of Pharmaceuticals, Government of India. Industry Partners and Investors have shown keen interest to invest in these parks in Tamil Nadu.

“I request your good offices to instruct the ministers concerned for providing technical and financial support to Government of Tamil Nadu for early establishment of these Parks in my state,” Palaniswami urged Shah.

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Published on November 21, 2020
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