The Tamil Nadu government has requested Rs 63,246 crore for the Chennai Metro Rail Phase II project in the upcoming Union Budget. The foundation stone for this crucial infrastructure project was laid in November 2020.
The 116-km-long Phase II consists of three corridors: Madhavaram to Sholinganallur (Corridor-5), Light House to Poonamallee (Corridor-4), and SIPCOT (Corridor-3). The project is estimated to cost around Rs 61,843 crore.
The Public Investment Board recommended the project in August 2021, Tamil Nadu Finance Minister Thangam Thennarasu said. However, it has been three years since it received approval from the Cabinet Committee on Economic Affairs.
Thennarasu said. “Pending this approval, the entire expenditure is being borne by the state from its funds, The delay in approval is causing hardship to the people of Chennai as the project implementation is slowing down and the state’s finances are being affected. I urge the central government to immediately approve the project as originally proposed and ensure that there is adequate funding in the Union Budget 2024-25.”
Thennarasu made this appeal during a meeting of state finance ministers with Sitharaman in the national capital, Business Standard reported.
Thennarasu, among other demands, called for merging cess and surcharge into the basic rates of taxation. This is aimed at ensuring that the states get their legitimate share in the transfers after the end of the GST compensation regime in 2022. He also demanded an equal share of the cost of implementing all central schemes, that is, twenty-five percent.
The CMRL wants to launch the first part of the Phase II network from Poonamallee to Porur Junction by the end of next year.