Centre Government has backed out Chennai Metro Phase 11: Tamil Nadu Government Responsible for Entire Project!
The Union Minister, Nirmala Sitharaman declared that the cost for the Chennai Metro Rail Phase 2 would be fully charged by the Tamil Nadu government, it was the state’s conscious decision to implement the project as a “state sector scheme.” As a result, there would be no equity from the Central Government.
Previously, the Tamil Nadu government approached the central government for funding support for the Chennai Metro Phase 2 project under a 50:50 equity share model. Additionally, the state has requested loan assistance from bilateral or multilateral agencies to boost the project’s financial foundation.
The second consists of three corridors: From Madhavaran to SIPCOT (45.8 km), Corridor 4 from Lighthouse to Poonamalle Bypass (26.1 km), and corridor 5 from Madhavaran to Sholinganaullar (47 km).
According to the Tamil Nadu Finance Minister Thangam Thennarasu, Chennai Metro Rail Limited has spent till now Rs 18, 564, crore for Phase-2 of the project. Total money of Rs 11,762 crore was from TN’s own resources and Rs 6,802 crore was through loans from foreign financial institutions.
The center has not yet allocated even one rupee of the Rs 7,425 crore recommended by the Public Investment Board (PIB) for the project, the minister stated.
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