CMRL and SBI sign ₹450 crore loan for AFC and Rolling Stock for Chennai Metro Phase 2

Chennai, India (Metro Rail Today): The Chennai Metro Rail Limited (CMRL) has successfully secured a Rupee Term Loan from State Bank of India (SBI). The loan, amounting to Rs 450 Crore, will play a crucial role in advancing the funding requirements for the upcoming Phase-II projects of the Chennai Metro.

The allocated funds from the Rupee Term Loan will be strategically utilized, with INR 150 Crore directed towards the Phase-II Automatic Fare Collection (AFC) work spanning from Koyambedu to Sipcot. Additionally, INR 300 Crore will be earmarked for the procurement of 30 train cars, a pivotal aspect of Phase-II's expansion. This marks a notable collaboration as Chennai Metro embarks on a unique partnership with domestic commercial banks to fulfill the financial necessities of Phase-II initiatives.

The Director-Finance of Chennai Metro Rail Limited, Dr. Prasanna Kumar Acharya, officially issued the Letter of Award (LoA) to State Bank of India in a ceremony held on January 9, 2024. Jaleel Hasanath Syed Umar, Additional General Manager at SBI, Chennai, represented the bank during this significant occasion. The presence of R. Murali, Chief General Manager (F&A), Dr. D. Jebaselwin Gladson, General Manager (CM), Hari Ganesh, General Manager (F&A), and other officials added significance to the event.

This collaboration between Chennai Metro and State Bank of India underscores a progressive step in sourcing financial support domestically for the critical infrastructure development in Phase-II. The strategic allocation of funds towards AFC infrastructure and train car procurement aligns with the broader vision of enhancing metro connectivity and services in Chennai. As Phase-II projects gain momentum, this financial arrangement signifies a milestone in the sustainable growth of Chennai's metro network.

The issuance of the Rupee Term Loan signifies a strong partnership between Chennai Metro and State Bank of India, laying the financial foundation for the realization of Phase-II projects. This collaboration not only exemplifies innovative financing approaches but also emphasizes the commitment to advancing urban transportation infrastructure in Chennai. As the metro network expands, the infusion of funds through such collaborations becomes instrumental in fostering efficient and modernized public transportation systems.