Chennai Metro Rail – Delayed

Chennai: The metro rail project of the city might get delayed due to the financial crunch through which the construction companies are presently undergoing. The elevated line from Koyambedu to Saint Thomas Mount, which was considered as a showpiece of the project, is probably going to miss its year-end deadline.

As per official sources, the construction of tracks and viaducts might meet their completion schedule by the year-end. However, signals, stations and other installations along the elevated line would in probability consume more time to be completed.

According to its schedule, the metro rail’s elevated line along with the stations were to be completed by December, and subsequently begin the trials by early January as a preliminary to commissioning of the line scheduled within July 2014.

The railway safety commissioner might not permit the trains to run even for trial purposes if the stations as well as the other facilities are not completed. Some of the main contractors along with numerous subcontractors, except for the big players such as L&T, are facing financial trouble as they have underwent losses within contracts elsewhere.

Generally these contractors are involved and associated with numerous other projects as well. Since, they have not received their respective payments as per the time allotted for the same, these contractors and sub contractors are not capable of investing and then claiming the amount later from the metro rail project.

Consolidated Construction Consortium Limited ( CCCL), which is developing the stations at CMBT, Koyambedu, Arumbakkam, Vadapalani, Sidco, Alandur and Saint Thomas Mount along the Koyambedu-Saint Thomas Mount line entailing a cost of above Rs 250 crore, has reportedly experienced a net loss of 30.2 crore for the quarter ended in June of 2013.

Origination of two initial corridors under the proposed phase-1 with a total stretch of 45.1 kilometers is being envisaged by the project. The second corridor which would be running through the prominent parts of North Chennai beginning from Washermanpet and covering Mannady, High Court, Chennai Central station and ending at the Chennai Airport would be around 23.1 kilometer long while the other corridor, starting from Chennai Central and ending at Saint Thomas Mount, would be 22 kilometers in length.

As per the information available on the Chennai Metro Web site, the portions of Corridor-1 which constitutes a stretch of 14.3 kilometers from Washermanpet to Saidapet, as well as Corridor-2 comprising a total stretch of 9.7 kilometers from Chennai Central to Anna Nagar 2nd Avenue would be underground while the remainder of the portions would be elevated.

Going by indications from cities such as what happened with other Indian cities where the metro is already operational, the real estate market along the metro corridors in Chennai is set to be transformed. A multitude of localities have already witnessed an increase in their capital values. Few areas have absorbed up to 15 to 20 per cent capital appreciation within the last one year. There is also a significant increase within the square feet cost of multi-storey apartments.

Apart from the main regions, Chennai’s peripheral areas have also been witnessing significant increase

in property prices due to the passing of metro. North Chennai which is the hub for the amalgamation of industrial and corporate sectors is among the major areas to be affected with the initiation of metro. This region would witness an increment within the property prices. It would also become easier for a hike in land prices with areas in North Chennai having underground stations.