Tamil Nadu Finance Minister Thangam Thennarasu presented the state budget for the fiscal year 2024-2025 in the Assembly recently.
The budget laid out a comprehensive plan that included infrastructure, education, social welfare, and cultural preservation. While presenting this year’s budget, he stated that the state government has decided to allocate Rs 12,000 crore in 2024 for the second phase of the Chennai Metro rail project.
The state budget included a significant highlight of Rs 2,500 crore for the modernisation of 4,457 km of urban roads. Meanwhile, enhancing mobility and connectivity within cities was the main goal of the announcement.
As part of the Budget estimates for 2024-25, the Tamil Nadu state government has allocated Rs 12,000 crore to Chennai Metro Rail for phase II implementation. Work on the upcoming phase II project, which covers over 116 kilometres of the city’s network, has been underway for several years, and the stretch from Poonamallee to Kodambakkam will be ready for commuters in December 2025, according to The Hindu.
The project has a total cost of Rs 63,246 crore and is funded by the Centre and the State, as well as loans from various banks such as the Japan International Cooperation Agency, Asian Development Bank, and Asian Infrastructure Investment Bank. Though the Tamil Nadu State government has contributed significantly, they have requested that the Centre approve the project and implement it as a 50:50 joint venture between the Centre and the State.
Furthermore, the detailed project report (DPR) for the Airport-Kilambakkam line, which is expected to cost Rs 4,625 crore, is currently scheduled to be sent by the State government. Even though Chennai Metro Rail Limited (CMRL) had previously submitted the DPR to the State government, it is currently being worked on, and as stated in the Budget, it will be submitted to the Centre for approval based on equity sharing. The DPRs for additional corridors, such as Poonamallee to Parandur and Koyambedu to Avadi, will soon be ready as well.
Additionally, across from Chennai Central Railway Station, a 27-story, iconic structure with a heritage design that spans over 10 lakh square feet will be constructed at an estimated cost of Rs 688 crore. Reports state that CMRL and the Tamil Nadu Industrial Development Corporation (TIDCO) will work together to create a Special Purpose Vehicle (SPV) for the construction of the project. Commercial and public sector businesses, as well as IT firms, will use this as office space.
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