Tamil Nadu Urges Urgent Funds for Chennai Metro Phase II

Tamil Nadu Finance Minister Thangam Thennarasu has requested Union Finance Minister Nirmala Sitharaman to make provisions in the upcoming union budget and sanction Rs 63,246 crore for the Chennai Metro Rail Phase II project. He also highlighted the financial strain on the state due to delayed project approval and recent natural disasters.

Tamil Nadu's government has made a fervent appeal to Union Finance Minister Nirmala Sitharaman, urging the inclusion of a significant Rs 63,246 crore in the Union Budget for the Chennai Metro Rail Phase II project. Laid in November 2020, the project's approval has been stalled for years by the Cabinet Committee on Economic Affairs, adding financial strain to the state as it has solely borne the project costs so far.

Tamil Nadu Finance Minister Thangam Thennarasu warned that the prolonged delay significantly hampers the state's finances and slows down Chennai Metro's progress, leading to considerable public inconvenience. Thennarasu emphasized the need for immediate sanctioning of the project to facilitate its envisioned implementation and requested adequate budget provisions for 2024-25.

Speaking at the state finance ministers' meeting with Sitharaman in New Delhi, Thennarasu also highlighted the state's need for disaster relief funds amounting to Rs 37,906 crore following two natural calamities in December 2023. Additional demands included merging cesses and surcharges into basic tax rates for fair state revenue distribution, and a 50-50 cost-sharing model for all central schemes post-GST compensation regime.

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