CHENNAI: Strongly denying the contentions of Union Finance Minister Nirmalatha Sitharaman that the state has spent only Rs 5,880 crore for Phase-II of the Chennai Metro Rail Project despite the Government of India (GOI) arranging for Rs 21,000 crore as loans, Tamil Nadu Finance Minister Thangam Thennarasu in a statement on Friday said that Rs 18,564 crore has been spent for the project so far.
Of the total money spent, Rs 11,762 crore was from TN’s own resources and Rs 6,802 crore was through loans from foreign financial institutions. The centre, however, has not yet disbursed even one rupee from the Rs 7,425 crore recommended by the Public Investment Board (PIB) for the Phase-II, he said.
Thangam said, “We wonder if this is being done for political reasons to delay the projects to the detriment of public and to create a financial crisis for the state government.” He clarified on Sitharaman’s another key contention that the Phase II is a state-sector project.
“In 2017, the state recommended Phase II as a Central Sector Project. Based on funding agency JICA’s request to sign the loan agreement immediately to start the project in 2018, the state started implementing this project to avoid delay.
Since the GOI also approved it, the project was taken up for consideration by the PIB on August 17, 2021. The board proposed that this project could be implemented as a Central Sector Project,” he said.
‘Why is TN being treated as a stepchild?’
Thennarasu said the Union Finance Minister while presenting 2021-22 budget, said Kochi, Chennai, Bengaluru, Nagpur, and Nashik will be allocated funds.
However, the GOI approved Rs 30,399 crore for Bengaluru, Rs 1,957 crore for Kochi, Rs 6,708 crore for Nagpur, Rs 910 crore for Pune and Rs 12,200 crore for Thane under Central Sector Project. But no funds was provided for Chennai Metro Phase II.
Thennarasu said that in Budget Estimates 2024-25, all states including Maharashtra, New Delhi, Gujarat, and Karnataka have been allocated equity and subordinate debt, but there is no mention of this allocation to TN. “Why is TN being treated as a stepchild.
Since the state is implementing the project efficiently and as per the recommendation of PIB, I request the centre to sanction Rs 7,425 crore to TN and implement this scheme as a Central Sector Project.”