News Brief

Chennai Metro Phase 2 Gains Momentum With Centre Releasing Rs 3,000 Crore In FY26

Arjun Brij

Aug 07, 2025, 12:15 PM | Updated 12:15 PM IST


Chennai Metro
Chennai Metro

The Union government has released Rs 3,000 crore towards Chennai Metro Rail’s Phase 2 project in the ongoing financial year, according to a Right to Information (RTI) response obtained by activist Dayanand Krishnan, The New Indian Express reported.

The funds, disbursed by the Ministry of Housing and Urban Affairs as of 28 July, are part of a record Rs 8,445.8 crore earmarked for the project in FY2025-26, the highest annual allocation for any metro rail initiative in India this year.

According to the RTI reply, the disbursal includes Rs 1,841.2 crore in equity contribution, Rs 158.8 crore as subordinate debt, and Rs 1,000 crore in pass-through assistance (PTA) linked to external agency financing.

According to the TNIE report, a senior official from CMRL said that this year’s funding follows approximately Rs 5,400 crore released prior to 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 in April and May. Tamil Nadu has received a cumulative Rs 8,400 crore so far. Funds are released as required — there’s no fixed tranche system,” the official was quoted as saying by TNIE.

Spanning 118.9 km over three corridors, Phase 2 is among the most ambitious urban transport projects underway in India.

Its elevation to a central sector scheme in October 2024 has streamlined the flow of central funding, reducing procedural bottlenecks and easing the financial burden on the state.

Also Read: Rs 10,749 Crore National Highway Push In Karnataka: 23 Major Projects Targeted For Completion By FY26

Arjun Brij is an Editorial Associate at Swarajya. He tweets at @arjun_brij


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