Centre asks TN govt to develop Chennai monorail project under DBFOT model

The ministry of urban development has accorded 'in-principle' approval to the government of Tamil Nadu for taking up the 20.68 km Chennai Monorail Project (CMP) Phase-1, costing Rs3,267 crore.

The project will provide monorail services between Poonamalle and Kathipara with a link from Porur to Vadapalani with a total length of 20.68 km, at an estimated cost of Rs3,267 crore.

As per the approval accorded last week, the project would be implemented under 'design, build, finance, operate and transfer (DBFOT)' model with entire funding from the state government/state government agencies/ PPP partner without any financial support from the central government.

The approval is subject to the following conditions:

• Tamil Nadu government would ensure price based measures to promote ridership as part of an integrated traffic rationalization plan for the city to ensure ridership;
• A suitable arrangement, independent of Special Purpose Vehicle (SPV) for periodic fare revision for other competing modes;
• To provide multimodal integration, including suburban railways to provide network connectivity in the region to provide seamless travel;
• Setting up a Unified Metropolitan Transport Authority, duly backed by legislation, to facilitate coordinated planning and implementation of urban transport projects; and
• The state government and the central government would set up a joint oversight mechanism, the details of which would be incorporated in the Memorandum of Understanding to be signed between the two.

Chennai Metrorail Project is the fourth urban rail transport project to be approved under PPP model after Mumbai Metro Line-1 and 2 projects and Hyderabad Metro.