Chennai ( Metro Rail News): The Union Finance Minister Nirmala Sitharam stated that the Tamil Nadu government decided to build the Chennai Metro Rail Phase 2 as a State-run project, which means the State will pay all expenses for the project.
State Sector Scheme (Phase 2)
Sitharaman mentioned that the Public Investment Board had proposed Rs. 7,425 crore for the Chennai Metro project—which the Cabinet Committee on Economic Affairs had not approved. The amount that the Center would contribute in equity would be approximately Rs 7,400 crores.
She added, “The State government made the deliberate decision in 2018 to execute Phase II as a State sector scheme, which means the State will pay the full project cost.”
At present, the project is being carried out under the state sector.
Funds for the Chennai Metro Phase 2
Additionally, the Finance Minister stated that the Center would offer some financial support at a lower level. With Rs 32,000 crores already set aside for the project, the Department of Economic Affairs is actively assisting the State in obtaining foreign loans. However, Sitharaman said the State administration hasn’t even used Rs 6,000 crores.
The state has also applied for loans from bilateral or multilateral organisations to strengthen the project’s financial base.
Chennai Metro Phase 2
Chennai metro phase 2, spanning 116.1 kilometres (km), is currently under construction and features 118 stations. The total cost of the project is Rs.61,843 crore. The second phase consists of three corridors:
- Corridor 3 – Madhavaram to SIPCOT (45.4 km)
- Corridor 4 – Lighthouse to Poonamalle Bypass (26.1 km)
- Corridor 5 – Madhavaram to Sholinganallur (44.6 km).
Moreover, the first section of Chennai Metro Phase 2 is expected to be completed by 2026 and the entire project is estimated to be done by 2030.
