Centre’s Support Boosts Chennai Metro Rail Phase II

The ₹63,846 crore Chennai Metro Rail phase II project is set to receive Central funding soon, following the anticipated signing of a Memorandum of Understanding between the Centre and Tamil Nadu. With construction already underway, the State initiated the project independently to prevent delays while persistently seeking the Centre’s approval, which was granted in October this year.

Of the total cost, ₹33,593 crore will be financed through international loans, while the Centre contributes ₹7,425 crore in equity and subordinate debt, and the State adds ₹22,228 crore. The Centre’s equity participation reduces the State’s borrowing burden and ensures direct processing of the loan through the Union budget to Chennai Metro Rail Limited. This financial structure strengthens the State’s ability to fund other infrastructure projects while advancing the metro’s critical corridors.