Published On:August 10 2024
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"Union Minister Tokhan Sahu Announces Tamil Nadu Will Cover Costs for Chennai Metro Phase II"

Union Minister of State for Housing and Urban Affairs Tokhan Sahu has stated that the Chennai Metro Phase II project is currently being funded by the Tamil Nadu government as a State Sector Project. This revelation came in response to a query from DMK MP Dayanidhi Maran regarding the approval and disbursement of funds for the project.

The Phase II expansion of the Chennai Metro, which proposes a 118.9 km route at an estimated cost of ₹63,246 crore, is still under review for central funding. Sahu noted that the approval of such a high-cost project depends on its feasibility and resource availability.

Recent data provided by the Minister shows no fund allocation for the Chennai Metro Rail project in the past two financial years. Tamil Nadu Chief Minister MK Stalin has been actively seeking central funding for the project, urging Prime Minister Narendra Modi in February to expedite approval under the 50:50 joint venture model, similar to Phase I.

Phase I of the Chennai Metro Rail Project was implemented under a 50:50 joint venture between the central and state governments, and Phase II was proposed to follow the same model. Recommendations for this model were submitted to the Union Ministry of Housing and Urban Affairs (MoHUA) in January 2019. The project received endorsements from MoHUA and NITI Aayog, with funding commitments from JICA, ADB, AIIB, and NDB. Union Home Minister Amit Shah laid the foundation stone for Phase II on November 21, 2020.

Despite the project being recommended as a Central Sector Project and receiving counterpart funding approval in the 2021-2022 Union Budget, progress has stalled. Chief Minister Stalin's letter to Prime Minister Modi highlights that the proposal has been pending Cabinet Committee on Economic Affairs (CCEA) approval for over two years.

In the absence of central funding, the Tamil Nadu government has proceeded with the project using state funds, which has strained state finances and slowed progress. The Chief Minister's letter calls for immediate resolution to ensure the project meets its timelines and fulfills the aspirations of Chennai's residents.

HBL





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