New Delhi: Union Urban Development Ministry has accorded 'in-principle approval' to the Tamil Nadu Government for taking up the Rs 3,267 crore Chennai Monorail project.
Under the 20.68 km-long monorail project, services will be provided between Poonamalle and Kathipara with a link from Porur to Vadapalani in Chennai, a senior UD Ministry official said.
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 Centre.
As per the conditions stipulated by the Centre for such projects, the Tamil Nadu Government would have to ensure price-based measures to promote ridership as part of an integrated traffic rationalisation plan for the city.
There would be a suitable arrangement, independent of Special Purpose Vehicle (SPV) for periodic fare revision for other competing modes.
The service aims to provide multi-modal integration, including sub-urban railways to provide network connectivity in the region for seamless travel.
As per the conditions, a Unified Metropolitan Transport Authority, duly backed by legislation would be set up to facilitate coordinated planning and implementation of urban transport projects.
The Central and State 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 parties.
Chennai Metrorail is the fourth urban rail transport project to be approved under PPP model after Mumbai Metro Line-1 and 2 projects and Hyderabad Metro.