Chennai Metro Phase 2 gets ₹12,000 crore boost from State Budget 2024-25

Chennai, India (Metro Rail Today): In a significant development for the transportation infrastructure of Tamil Nadu, Finance Minister Thangam Thennarasu unveiled the state budget for the fiscal year 2024-25 in the recent Assembly session. The budget outlines a comprehensive plan encompassing infrastructure, education, social welfare, and cultural preservation. Notably, the state government has earmarked a substantial allocation of Rs 12,000 crore in 2024 for the second phase of the Chennai Metro rail project.

The Finance Minister also revealed that detailed project reports for metro rail initiatives in Coimbatore and Madurai have been submitted to the Union government for approval on an equity-sharing basis. The state budget includes a noteworthy allocation of Rs 2,500 crore for the modernization of 4,457 km of urban roads, aligning with the overarching goal of enhancing mobility and connectivity within cities.

As part of the budget estimates for 2024-25, the Tamil Nadu state government's allocation of Rs 12,000 crore to the Chennai Metro Rail for the implementation of phase II is a crucial step forward. The upcoming phase II project, covering over 116 kilometers of the city's network, has been in progress for several years, with the stretch from Poonamallee to Kodambakkam expected to be operational for commuters by December 2025.

With a total cost of Rs 63,246 crore, the project is funded by both the Centre and the State, in addition to loans from entities such as the Japan International Cooperation Agency, Asian Development Bank, and Asian Infrastructure Investment Bank. While the Tamil Nadu State government has made significant contributions, they have proposed that the Centre approve and implement the project as a 50:50 joint venture between the Centre and the State.

The budget announcement also sheds light on the detailed project report (DPR) for the Airport-Kilambakkam line, anticipated to cost Rs 4,625 crore. The State government is set to send the DPR for approval, following the equity-sharing model. The DPRs for additional corridors, including Poonamallee to Parandur and Koyambedu to Avadi, are expected to be ready soon.

In a notable architectural venture, a 27-story iconic structure with a heritage design, spanning over 10 lakh square feet, is slated to be constructed across from Chennai Central Railway Station. Estimated at Rs 688 crore, CMRL and the Tamil Nadu Industrial Development Corporation (TIDCO) will collaborate to establish a Special Purpose Vehicle (SPV) for the project's construction. This structure is envisioned to serve as office space for commercial enterprises, public sector businesses, and IT firms.

The budgetary allocations underscore the state's commitment to advancing its transportation infrastructure, particularly in the expansion and enhancement of the Chennai Metro Rail project. The substantial funding signifies a strategic move towards modernization and improved connectivity for the residents of Tamil Nadu.