Funds not released for Chennai Metro this year: Govt
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Last Updated: Thursday, August 26, 2010, 15:41
New Delhi: Funds have not been released this year for the Mass Rapid Transit System being built in Chennai by Chennai Metro Rail Ltd as the state government has not signed the MoU, the Rajya Sabha was informed on Thursday.

Replying to supplementaries in Question Hour, Minister of State for Urban Development Saugata Roy said Chennai Metro is a special purpose vehicle which is funded by Tamil Nadu government and the Government of India.

The Union government has allocated Rs 652 crore for Chennai Metro in 2010-11 but no funds have been released as the MoU has not been signed, he said.

"The Memorandum of Understanding (MoU) between Tamil Nadu government, the Government of India and Chennai Metro has not yet been signed," he said.

"We urge the Tamil Nadu government to sign the MoU so that the Government of India can release funds," he said.

The Union government, he said was committed to paying 20 per cent of the project cost.

During past three years, the Centre has given Rs 152.79 crore to the project while the state government has contributed Rs 1,050 crore. This year, the state government is to provide Rs 600 crore.

"The total funds utilized so far for this project is Rs 306.24 crore as on July 31, 2010," he said adding the project is scheduled for completion by 2015.

"In the initial phase, state government pays more money because land acquisition has to be done which is the job of the state government," he said.

N Balaganga (AIADMK) demanded action against contractor Matyas Infra, a unit of IT firm Satyam, which was responsible for delay in certain sections of the project.

To this, Roy said the question needs to be put to the Railway Ministry which is responsible for the Chennai Mass Rapid Transit System. Matyas Infra was working on Chennai Mass Rapid Transit System, which is different from Chennai Metro project.

The reply did not satisfy AIADMK members who wanted Roy to spell out what action was taken against Matyas.


First Published: Thursday, August 26, 2010, 15:41

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