The widest ramification seems to be the announcement of a Multi Modal Transport Integration Study to be carried out over the financial year.

Other major announcements included identification of four sites based on traffic flow patterns for flyover projects, and the allocation of `1,250 crore towards plan expenditure on urban development schemes.

The Multi Modal Transport Study is aimed at bringing different modes of transport and transport networks to mesh with each other in a way that provides increased connectivity within Chennai’s metropolitan spread.

“During 2013-2014, a study on the Multi Modal Transport Integration in Chennai City will be taken up by this Government,” said Finance Minister while delivering the Budget speech.

The announcement also entailed a `750 crore allocation towards the Chennai Metro Rail project.

The government has also proposed to construct four flyovers in Chennai, at locations chosen on the basis of the Chennai City Traffic and Transportation Study (CTTS).

A plan allocation of `1,250 crore was made towards various urban development works under the Chennai Mega City Development Mission and the Integrated Urban Development Mission. Additional work will be taken up to ensure the creation of an underwater sewerage network in 40 local bodies that were merged with the Chennai Corporation in 2011.

The government also introduced a cap on the allocation of funds for projects taken up by local bodies. The government will now fund not more than 75 per cent of a project cost for financially strong local bodies and 90 per cent for weaker ones. This means local bodies like the Chennai Corporation would have to fund the remaining 25 per cent from their own revenues or through institutional loans.