COIMBATORE: Finance Minister Nirmala Sitharaman on Thursday said the Phase II of Chennai Metro Rail is a state project and that it should be funded by Tamil Nadu government, with the Centre chipping in with 10% of the total cost. The state government had proposed it to be a state sector project, she said.
Of the total cost of Rs 63,246 crore, the state is expected to bring in Rs 22,228 crore while Rs 7,425 crore is being sourced from the Centre through the public investment board.
She said an additional Rs 33,593 crore was obtained through various multi and bilateral external development agencies. “However, only 27% of the loan, equalling to Rs 5,880 crore, has been utilised by the state.
As per the FRBM rules, up to 3% GSDP can be borrowed (by the state), and since this project is categorised as a state sector project, the loan should fall within the FRBM limit,” she said.
TN cannot blame Centre over funds: FM
Finance Minister Nirmala Sitharaman said the Phase 1 of the Metro Rail project, which started in 2015, covered 54 km and was initiated as a central sector scheme, with 60% of the cost being covered by external loans. The Phase II project consists of three lines and spans 118 km. The minister explained that a loan of Rs 21,560 crore was secured between 2018 and 2023 as per the state government’s request.
She expressed dissatisfaction with the state government blaming the Centre for insufficient funds, asserting that the central government had arranged the required loan and the state has underutilised the funds.
Welcoming Tamil Nadu Chief Minister MK Stalin’s efforts to attract foreign investments, she said, “I want the CM to make every attempt to get more investments to the state. If Tamil Nadu CM is doing this, I welcome it. Let see what comes to Tamil Nadu.”
Taking strong exception to a charge of the DMK that Tamil Nadu got back just Rs 29 paise for every single rupee that the state gave to the Centre, she said the state has received more funds.
Decisions at the GST Council meeting were made with the consensus of all states and not unilaterally, she said, “Tamil Nadu minister is a member of the council. Any decision made at the GST Council was passed with consensus and no decision has been made ignoring the dissent.”
‘TN should bring in Rs 22k crore’
Of the total cost of Rs 63,246 crore, state government is expected to bring in Rs 22,228 crore while Rs 7,425 crore is being sourced from the central government
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