Chennai metro cost escalates to Rs. 19,000cr

    Chennai Metro
    The cost of the Phase-I of the Chennai Metro Rail Project, which was to be built at an initial investment outlay of over Rs. 14,600cr, its cost has gone up to Rs. 19,000cr, owing to various factors including the issues in contract, price escalations and variations in the project after the conception. The phase-I is expected to be completed by December next year and it is also tweaking the model it has implemented earlier, under which the responsibility of both design and building vested with the contractor, making their job riskier. It may be noted that the works, awarded to a joint venture between Gammon India and Russian contractor- Mosmetrostroy, for design and build of a stretch of underground operations, were delayed after the Russian partner allegedly abandoned the project abruptly. The ministry is looking at bringing in standards on sourcing of trains, telecom, signals, and construction system materials for the metro rail projects. The company has decided to take the onus of designing, which would bring matters under its control, and reduce the risk of the contractor. The Japan International Cooperation Agency (JICA) officials are expected to visit the city next month, to discuss with the government on the extension project. Out of the Rs. 3,700-cr proposed investment for the project, around Rs. 2,100-cr is expected to come from JICA.
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