Metro rail project is being implemented to reduce traffic congestion in Chennai city. Chennai Metro Phase 2 works are going on actively with the participation of Central and State Governments. However, the central government did not allocate its equity funds for this and delayed the metro rail works. Recently, Chief Minister M. K. Stalin, who met Prime Minister Modi, demanded that the central government should allocate funds for the metro rail works. Following this, the central government has given permission to allocate funds for metro works.
In a press release issued by the central government in this regard, “The Central Cabinet has recently approved the 2nd phase of the Chennai Metro Rail Project as a central sector project at a total cost of Rs. 63,246 crores. So far this project has been implemented as a ‘State Department’ project with the project funding being primarily the responsibility of the Tamil Nadu Government to the extent of about 90 per cent of the estimated project cost.
With the latest approval, the central government is now providing approximately 65 per cent of the appraisal cost for Chennai Metro Rail Phase 2, which includes a full loan of Rs 33,593 crore, equity and subordinated debt of Rs 7,425 crore and the state government will fund the remaining 35 per cent of the appraisal cost. .
The central government said that loans from international and bilateral development agencies would be treated as central government loans and would be disbursed directly to the Chennai Metro Rail Limited (CMRL) from the central government budget, adding that “it was the state government’s responsibility to make available or arrange loan funds for the project before the project was approved by the central government.” has said
With the approval of the Union Cabinet, the budgetary resources of the state government have been released to the tune of Rs.33,593 crore for other development works.
