Cabinet considers 5% cost escalation in contracts.
The Cabinet Committee on Economic Affairs (CCEA) has approved the construction of double line with electrification of three railway routes in Tamil Nadu. The projects will be completed in 2020-21.
Approval has been given to 102-km Vanchi-Maniyachchi-Nagercoil via Tirunelveli in Tamil Nadu. It would cost Rs.1,003.94 crore with completion cost at Rs.1,114.62 crore based on 5% escalation per annum.
The project will generate direct employment during construction for 24.48 lakh mandays.
Vanchi-Maniyachchi- Nagercoil via Tirunelveli is an important trunk route serving Southern end of Tamil Nadu and Kerala.
Also approved was 160-km Madurai-Vanchi and Maniyachchi-Tuticorin line in Tamil Nadu.
The project would cost Rs.1,182.31 crore with completion cost of Rs.1,272.51 crore based on 5% escalation per annum.
It would generate direct employment during construction for 38.40 lakh mandays.
CCEA has also approved the construction of double line with electrification between Thiruvananthapuram in Kerala and Kanniyakumari in Tamil Nadu.
The 86.56 km project would cost Rs.1,431.90 crore with completion cost of Rs.1,552.94 crore based on 5% escalation per annum.
The project will generate direct employment during construction for 20.77 lakh mandays. fii-news.com
