Chennai Metro Rail phase 2: Stalin meets PM, seeks early approval of 50:50 equity sharing between Centre and TN

CHENNAI: Chief minister M K Stalin has raised with Prime Minister Narendra Modi the delay in Chennai Metro Rail phase 2 and urged early approval for a 50:50 equity sharing between Union and state govts as was done for phase I. The final completion date has been pushed from Dec 2027 to Dec 2028 which could lead to cost overruns, he said.
In a memorandum presented to Modi, Stalin recalled that Union home minister Amit Shah laid the foundation for phase 2 in 2020, and Union finance minister Nirmala Sitharaman announced “counterpart funding” in the 2021-22 Union budget.Public Investment Board (PIB) recommended it a central sector initiative, which would provide Chennai Metro Rail Limited (CMRL) with an equity infusion of 10,814.8 crore.
“As a state-sector project, state govt’s infusion alone is not possible as it will affect the ownership structure. Equal equity participation by both govts is absolutely necessary,” he said. CMRL is a joint venture with 50% equity holding each by state and Centre.
Phase 2’s progress has slowed down due to fiscal constraints faced by TN under Fiscal Responsibility and Budget Management Act. Last year, these constraints led it to instruct CMRL to reduce the pace of work, resulting in a budget cut from Rs 10,000 crore to Rs 9,000 crore. This limited total project expenditure to Rs 8,000 crore, he said. Consequently, the commissioning dates of various stages are being delayed by almost a year.
Expressing disapproval of Union govt’s non-release of funds under the Samagra Shiksha Scheme linked to National Education Policy (NEP), Stalin said the state has been implementing “most of NEP’s provisions,” including a breakfast scheme. NEP states there would be greater flexibility in implementing 3-language formula and no language would be imposed on any state, but a clause of the MoU to establish schools under PM-SHRI does not reflect this spirit. “TN is seeking an amendment to the MoU in line with the constitutional safeguard provided to it as per the Official Language Rules 1976.”
Demanding the release of 145 fishermen and their boats from Sri Lankan custody, Stalin said his meeting with Modi was pleasant. “The PM spoke to us happily. It is up to him to turn it into a fruitful one.”
Stalin lauds Senthil Balaji’s “courage”
Later, Stalin commended former minister V Senthil Balaji’s “courage,” expressing confidence in a successful legal battle for his release.
Addressing reporters on the sidelines of his meeting with the Prime Minister, he said, “I just told you yesterday. He has been brave. We appreciate his courage,” Stalin said. “We are confident that he will be freed by waging a battle in the court soon. He too has (the confidence).”
Balaji met the chief minister after Stalin returned from Delhi. Balaji visited Udhayanidhi Stalin at his camp office, and the two exchanged greetings.