The Centre approved over Rs500 crore (5,000 million (mn)) on 25 June 2026 for an Intelligent Transport System project in the Chennai Metropolitan Area, part funded through a Japan International Cooperation Agency (JICA) loan to the Centre. The project has an estimated value of about Rs645.59 crore, equivalent to 6,455.9 mn, and the contract of Rs530 crore signed with Larsen & Toubro on 31 March 2023 corresponds to 5,300 mn. JICA approved the loan on six June 2023. The financing structure combines central budgetary allocation with the JICA loan and will be disbursed through implementing agencies over the project period.

The ITS package includes adaptive traffic signal control at 165 junctions, a traffic incident detection system at 58 locations, a variable message sign system at 17 places and a red light violation detection system at 50 junctions. The scheme also provides for junction improvements, camera installation and signal replacement at selected intersections. These elements are intended to integrate real-time monitoring and centralised control.

As of six March 2026, civil work for junction improvements had been completed at 104 of the 165 identified junctions and a pilot had been under way since January 2024 at 17 locations. The Greater Chennai Corporation expected full operation of the ITS by August 2026. Adaptive signals introduced by the Greater Chennai Traffic Police in January 2026 use real-time traffic data to adjust timings at key intersections.

Chennai Smart City Limited is implementing the project as a convergence initiative with support from municipal and traffic authorities and technical partners. Authorities stated the system aims to accelerate movement across the metropolitan area, reduce congestion and lower accident rates. JICA is a development agency of Japan providing the loan and technical endorsement for the programme. Project managers indicated staged commissioning of corridors and integration with existing traffic management systems across Chennai.