The government has approved the Rs 146-billion (Rs 14,600-crore) Chennai Metro Rail project, it said in New Delhi on Thursday.
The project will be executed by Chennai Metro Rail Ltd, a joint venture with equal equity participation from the central and state governments, which has been set up on the lines of the Delhi Metro Rail Corp (DMRC).
The Cabinet Committee for Economic Affairs (CCEA) approved the project at a meeting held in New Delhi on Wednesday evening.
DMRC has prepared the detailed project report. In the first phase, 45.046 km will be constructed, of which 24 km will be underground and 21 km elevated. The project is targeted to be completed by 2014-15.
The project cost takes into account escalation, central taxes and interest during the period of construction, but excludes state taxes and value of the land owned by the state government.
According to an official, about 59 per cent of the cost will raised through soft loan from the Japanese government. The loan agreement was signed between the two countries in last November in Tokyo.