Revamped Funding Blueprint: Chennai Metro Phase-2 Gets 65% Central Government Boost

The central government will cover 65% of the Chennai Metro Phase-2 project's cost, totaling over Rs 41,000 crore. The Union Cabinet recently approved the project's budget of Rs 63,246 crore. This shift lightens the financial burden on the Tamil Nadu government, allowing it to allocate funds elsewhere.

The central government is set to finance 65% of the Chennai Metro Phase-2 project's cost, amounting to over Rs 41,000 crore, according to the finance ministry.

On Thursday, the Union Cabinet approved a plan to construct three corridors as part of this phase, with a total estimated budget of Rs 63,246 crore. The Centre's contribution represents a significant shift from prior project funding strategies, which saw the Tamil Nadu government shouldering nearly 90% of costs.

This financial restructuring allows Tamil Nadu to redirect Rs 33,593 crore toward other developmental initiatives. The Ministry of Finance is in talks with international agencies to finalize loan agreements, with CMRL bearing the loan repayment responsibility, potentially supported by the state government if needed.

(With inputs from agencies.)