Tamil Nadu Seeks Centre's Share for Chennai Metro Rail Phase-2

Tamil Nadu Finance Minister Thangam Thennarasu has called on Union Finance Minister Nirmala Sitharaman to release Rs 7,425 crore for the Chennai Metro Rail phase-2 project. The Public Investment Board recommended this Central contribution, but the Centre has yet to disburse its share despite the project's significant progress.

Tamil Nadu Finance Minister Thangam Thennarasu urged Union Finance Minister Nirmala Sitharaman on Friday to disburse Rs 7,425 crore, the Centre's share of funding for the Chennai Metro Rail phase-2 project. The request adheres to the Public Investment Board's recommendation.

Thennarasu emphasized that recognizing the project as a Central Sector Project (CSP) would alleviate Tamil Nadu's debt burden. According to Nirmala Sitharaman, despite the Centre facilitating a Rs 21,000 crore borrowing, Tamil Nadu has independently spent Rs 5,880 crore. However, Thennarasu revealed that Rs 18,564 crore has already been expended, with majority of the funds coming from state resources and borrowing.

Approved in 2017, the phase-2 project was to be a 50:50 cost-sharing endeavor between the Centre and the state, along with additional borrowing. While other cities like Bengaluru and Kochi have similar projects funded as CSPs, Tamil Nadu's request has yet to be fulfilled, raising concerns of political bias.

(With inputs from agencies.)