Centre releases Rs 3,000 crore for Chennai Metro Phase 2 in current financial year
CHENNAI: The union government has released Rs 3,000 crore so far this financial year towards Chennai Metro Rail’s Phase 2 project, according to a Right to Information (RTI) response accessed by TNIE.
The funds, disbursed by the Ministry of Housing and Urban Affairs as of July 28, form part of a total outlay of Rs 8,445.8 crore earmarked for the project in 2025-26 — the single-largest allocation for any metro project across the country this year.
The release includes the full equity contribution of Rs 1,841.2 crore, Rs 158.8 crore in subordinate debt, and Rs 1,000 crore in pass-through assistance (PTA) from external agencies, according to the ministry’s reply to RTI petitioner Dayanand Krishnan.
A senior official with Chennai Metro Rail Limited (CMRL) said the centre had already released approximately Rs 5,400 crore before March 2025, following the formal approval of Phase 2 as a central sector scheme in October 2024.
“The Rs 3,000 crore includes funds received during April and May. In total, Tamil Nadu has received around Rs 8,400 crore so far. It’s not disbursed in tranches — funds are released as and when needed,” the official said.
Spanning 118.9 km across three corridors, Phase 2 is one of India’s largest ongoing urban mobility investments. Its reclassification as a central sector scheme last year has unlocked direct funding from the union government, after years of procedural delays.
The steady flow of funds is expected to ease financial pressure on the Tamil Nadu government, which has been seeking continued central support for its expanding mass transit infrastructure.
The large allocation also signals the strategic and political significance of the project, with Chennai emerging as a key node in India’s urban transport agenda.
RTI activist Krishnan, who has closely tracked metro funding in Tamil Nadu, urged the union government to expedite approvals and funding for three pending proposals from the state: A new corridor linking Chennai Airport to Kilambakkam, and greenfield metro projects in Madurai and Coimbatore.
Concrete moves
Release includes equity of Rs 1,841 cr, Rs 158 cr subordinate debt, Rs 1K c assistance from external agencies
In total, Tamil Nadu has received around Rs 8,400 crore so far, says official
118.9 km across 3 corridors; Phase 2 is one of India’s largest urban mobility projects