Centre boosts Chennai Metro with funds

the central government has sanctioned a record-breaking ₹8,445.8 crore for the Chennai Metro Phase 2 project in the current financial year, making it the single largest allocation for any metro rail initiative in the country this year.

The strategic infusion of funds marks a transformative moment for Chennai’s public transport ecosystem and follows prolonged financial uncertainty that had previously stalled progress.This pivotal development comes on the heels of the Centre’s decision in October 2024 to classify the project as a centrally-assisted scheme. The categorisation resolved a three-year fiscal bottleneck during which the state was compelled to shoulder the financial burden alone, leading to delayed contractor payments and mounting debt concerns. The approval reinstates a shared funding mechanism between the Centre and the state, significantly easing the pressure on Tamil Nadu’s borrowing ceiling and streamlining project implementation.

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Before the Centre’s involvement, the financial deadlock had caused payment delays of nearly two weeks, particularly affecting contractor bills estimated at ₹20 crore for elevated corridors and up to ₹40 crore for underground sections. The revised funding model has now enabled Chennai Metro Rail Limited to function with greater liquidity and operational fluidity, addressing long-standing financial stressors that threatened to derail one of the city’s most vital mobility projects.
In parallel with the central allocation, the state government has granted long-awaited clearance for the Airport to Kilambakkam metro corridor—a 15.4-kilometre extension estimated to cost ₹9,335 crore. The move signals a renewed policy commitment to connecting peripheral regions to the city’s mass rapid transit network, thus reinforcing Chennai’s ambition to become a sustainable and accessible metro city. With the Detailed Project Report for the corridor now submitted to the central government, momentum is expected to build around seamless airport connectivity and regional decongestion.

The double-pronged announcement underlines a growing political and administrative consensus around urban mobility as a key lever for economic growth, environmental sustainability, and social equity. Chennai’s Phase 2 corridor, when completed, is expected to dramatically reduce vehicular emissions, cut commute times, and improve quality of life, aligning closely with India’s broader vision for net-zero cities and equitable urban development.As metro networks become central to India’s urban future, Chennai’s rising profile as a priority investment zone may well act as a template for other cities seeking similar federal partnerships. While fiscal prudence remains vital, the current trajectory signals that with strategic alignment and timely approvals, public transit infrastructure can scale rapidly to meet the aspirations of growing metropolitan populations.

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Centre boosts Chennai Metro with funds