Chennai: The central government has decided to finance about 65 percent of the total estimated cost of the Chennai Metro Rail Project Phase-2, a move recently approved by the Union Cabinet as a Central Sector Project. According to a Press Information Bureau (PIB) release, this financing decision comes in response to the request made by Tamil Nadu Chief Minister MK Stalin during his recent meeting with Prime Minister Narendra Modi. The total project cost is estimated to be ₹63,246 crore, with the central government now stepping in to cover a significant portion of it.
Previously, the project was being implemented as a state sector initiative, with the Tamil Nadu government bearing around 90 percent of the financial responsibility. Under the Metro Rail Policy 2017, the central government’s role had been limited to financing only 10 percent of the project’s costs, excluding land and certain other items. However, with the recent approval, the central government will now provide 65 percent of the required funds, including the entire debt of ₹33,593 crore, along with equity and subordinate debt amounting to ₹7,425 crore. The remaining 35 percent of the cost will be financed by the state government.
The central government has also played a role in assisting the Tamil Nadu government to secure loans from bilateral and multilateral agencies, totaling ₹32,548 crore, of which around ₹6,100 crore has already been utilized. The newly approved funding is expected to significantly reduce the financial burden on the state, speeding up the project's completion.
Chief Minister MK Stalin expressed his gratitude to Prime Minister Modi for approving the second phase of the Chennai Metro Rail Project, which has been a long-pending demand of the people of Tamil Nadu. Taking to social media, Stalin stated, "Thank you, Hon'ble Prime Minister Narendra Modi, for accepting our request during my last meeting with you and approving the second phase of the Chennai Metro Rail Project. The long-pending demand of the people of Tamil Nadu has now been accepted. We are confident of completing this project as soon as possible."
Political analysts have noted the broader implications of this move, particularly in the context of ongoing relations between the central government and Tamil Nadu. The DMK, the ruling party in the state, is a key member of the opposition India Alliance, and some view the central government’s decision as an attempt to improve ties with the state. Political observers suggest that this gesture from the Modi government could be a strategic move aimed at reducing tensions and building a cooperative relationship with opposition-ruled states like Tamil Nadu.
BJP leaders have also highlighted that this decision sends a message to other NDA allies, demonstrating the central government’s willingness to cooperate with states ruled by opposition parties. A senior RSS leader remarked that this move is meant to project the BJP as accommodating and willing to work with opposition-led states, potentially fostering better relations with the DMK while maintaining strong ties with existing allies.
By addressing long-standing demands from Tamil Nadu and showing a collaborative approach, the central government is likely aiming to create a more unified and stable political environment ahead of the upcoming elections.
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