The Union government has rejected the metro rail projects for Madurai and Coimbatore for the second time, citing inadequate population, low projected ridership and limited travel-time savings. The decision represents another setback to Tamil Nadu's plans to expand metro connectivity beyond Chennai. The projects were returned to the state after a review of feasibility and demand projections.

In a letter dated July 22 the Ministry of Housing and Urban Affairs (MoHUA) told the Tamil Nadu Chief Secretary that Detailed Project Reports submitted by Chennai Metro Rail Limited (CMRL) failed to justify the need for metro systems in the two cities. The ministry recommended strengthening bus-based public transport as a more cost-effective alternative and asked the state to rework proposals if it wished to pursue rapid transit. The proposals had previously been returned by the Centre in November last year and were resubmitted with updated estimates.

The Centre noted that both Madurai and Coimbatore have populations of around 15 lakh, which converts to one point five million (mn), well below the two million (mn) benchmark prescribed under the Metro Rail Policy, 2017. The ministry said the state could not rely on projected population estimates for 2022 and that 2011 Census figures should be the basis for assessment. It also assessed that projected ridership and travel-time benefits would not justify the high capital costs and operational subsidies that metro systems often require. Officials therefore advised prioritising enhancements to bus networks, intermediate public transport and feeder services to improve connectivity.

The Tamil Nadu government had proposed metro projects valued at Rs 11,360 crore and Rs 10,740 crore for Madurai and Coimbatore, equivalent to Rs 113.6 billion (bn) and Rs 107.4 billion (bn), with the Coimbatore project envisaging a 39-km elevated corridor and the Madurai plan covering a 31.93-km mix of elevated and underground sections. The Centre's assessment emphasised demand thresholds and cost effectiveness rather than withholding support for urban transport improvements. The state faces the task of revising plans or pursuing alternative modes if it wishes to expand rapid transit outside Chennai.