JICA has approved funding for the second phase, which would cost an estimated Rs 40,941 crore.
CHENNAI: The Japan International Cooperation Agency (JICA) will offer a loan assistance of Rs 20,196 crore for the 52.01 kms phase-II of Chennai Metro Rail project, the Tamil Nadu government said Saturday.
JICA has approved funding for the second phase, which would cost an estimated Rs 40,941 crore, a state government release said.
It is aimed at extending Metro rail connectivity between Madhavaram and Sholinganallur (35.67 kms) and from Madhavaram to Chennai Mofussil Bus Terminal (16.34 kms), the release added.
Union Finance Ministry, Additional Secretary, C S Mohapatra and Japan Ambassador to India, Kenji Hiramatsu formally exchanged documents at an event in New Delhi, Friday.
The loan agreement for providing the first tranche under the Official Development Assistance (ODA) of 75,519 million Japanese Yen (about Rs 4,770 crore) was also signed between Mohapatra and JICA, chief representative, Katsuo Matsumoto.
The funding would further enhance Metro Rail connectivity to various parts of the city.
Additional Chief Secretary, T.V. Somanathan and Chennai Metro Rail Managing Director, Pankaj Kumar Banswal were also present on the occasion.
Chennai Metro Rail Limited (CMRL) is the Executing Agency of the Project.
Chennai is the fourth-largest metropolitan area in India. The population of the Chennai Metropolitan Area was about 7.1 million in 2001 and grew to 8.7 million in 2011. Population density in Chennai City is about 25,000 people per square kilometre, which is one of the most in the world, overtaking Mumbai and Kolkata. The newly inaugurated stretches will mitigate the difficulties caused by increasing road traffic in Chennai. These expansions in the city’s metro rail network will eventually lead to balanced regional development and enhancement of environmental conditions.
The Chennai Metro Project is an extraordinary example of Indo-Japanese partnership and has gained success that other Metro projects are looking forward to emulating.
JICA has extended 183,595 million Japanese Yen (approximately INR 11,300 crore) in concessional Official Development Assistance (ODA) loans since 2008 to develop the Chennai Metro Project. Overall, JICA has extended ODA loans of 1.1 trillion Japanese Yen (approximately INR 60,000 crore) to help develop metro systems in Delhi, Bengaluru, Kolkata, Chennai, Mumbai and Ahmedabad.