Infrastructure
Tamil Nadu Seeks Rs 63,246 Crore Funding For Chennai Metro Phase II
V Bhagya Subhashini
Jun 25, 2024, 04:37 PM | Updated 04:35 PM IST
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Tamil Nadu government urged Union Finance Minister Nirmala Sitharaman to allocate Rs 63,246 crore in the upcoming Union budget for the Chennai Metro Rail Phase II project.
The foundation stone for this significant infrastructure project was laid in November 2020.
The 116-kilometre-Phase II comprises three corridors: Madhavaram to SIPCOT (corridor-3), Light House to Poonamallee (corridor-4), and Madhavaram to Sholinganallur (corridor-5). The project is expected to cost approximately Rs 61,843 crore.
Tamil Nadu Finance Minister Thangam Thennarasu highlighted that the Public Investment Board recommended the project in August 2021. However, it has been awaiting approval from the Cabinet Committee on Economic Affairs for the past three years.
"Pending this approval, the entire expenditure is being borne by the state from its own funds. The delay in approval is severely impacting our state finances and slowing the project's implementation, causing hardships for the people of Chennai. I urge the Union Government to immediately sanction the project as originally envisaged and ensure adequate provisions are made in the Union Budget 2024-25," Thennarasu stated.
Thennarasu made this appeal during a meeting of state finance ministers with Sitharaman in the national capital, reports Business Standard.
Among other demands, Thennarasu called for merging cesses and surcharges into the basic rates of taxation to ensure states receive their legitimate share in devolution, following the termination of the GST compensation regime in 2022. He also advocated for an equal sharing of costs (50 per cent) in implementing all central schemes.
CMRL aims to launch the first stretch of the Phase II network from Poonamallee to Porur Junction by the end of next year.
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