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Tamil Nadu Chief Minister MK Stalin on Friday appealed to Prime Minister Narendra Modi for the prompt release of the Union Government’s share for Phase 2 of the Chennai Metro Rail project, highlighting that several states that began their metro projects after Tamil Nadu have already received their funding.
In a memorandum presented to Prime Minister Modi in Delhi, Stalin emphasized that the progress of the Chennai Metro project has been hindered by fiscal constraints faced by the state government. He noted that last year, the Tamil Nadu government had to instruct the Chennai Metro Rail Limited (CMRL) to reduce its work pace and cut the budget from ?10,000 crore to ?9,000 crore due to limited fiscal space.
The slowdown in project implementation is impacting the current financial year, which has restricted project expenditure to ?8,000 crore. As a result, commissioning dates for various stages have been delayed by nearly a year, pushing the expected completion date from December 2027 to December 2028 and leading to potential time and cost overruns.
Stalin explained that for Phase 2 of the project, CMRL needs to secure a principal debt of ?33,593 crore and a subordinate debt of ?17,434 crore. Without the corresponding equity contribution, the project risks an unfavorable debt-to-equity ratio, potentially jeopardizing CMRL’s sustainability. If the project receives funding as recommended by the Public Investment Board (PIB), CMRL could secure an equity infusion of ?10,815 crore. However, the Chief Minister pointed out that as a state-sector project, such an infusion solely by the Tamil Nadu government would disrupt the ownership structure, making equal equity participation from both governments essential.
“I request the Prime Minister to kindly intervene in this matter and facilitate early approval of Phase 2 of the Chennai Metro Project under a 50:50 equity sharing basis between the Government of India and Government of Tamil Nadu, as was done for Phase 1 and as recommended by the PIB,” the memorandum stated.
Additionally, Stalin urged for the immediate release of Samagra Shiksha funds, which are currently withheld due to non-implementation of the National Education Policy (NEP). The Chief Minister stressed that the scheme benefits approximately 43.94 lakh students, 2.21 lakh teachers, and 32,701 staff members, and withholding these funds could undermine the Government of India’s role in shaping the future of one of the nation’s most progressive states.
Stalin also expressed Tamil Nadu’s willingness to sign the Prime Minister’s Schools for Rising India Memorandum of Understanding with minimal modifications that incorporate the constitutional protection of the state’s two-language policy, in light of the NEP-2020. |
