Chennai Metro Phase 2 Gets Record Funding

28 Apr 2025 CW Team

In a major boost to urban infrastructure, Rs 84.45 billion has been sanctioned for the Chennai Metro Phase 2 project this financial year — the highest allocation received by any metro project across India so far.

This significant progress follows the Centre’s decision in October 2024 to categorise the project as a centrally-assisted initiative, ending over three years of financial clearance delays that earlier forced Tamil Nadu to fund the project independently.

Initially, the Tamil Nadu government had expressed reluctance to shoulder the entire borrowing burden, fearing an adverse impact on its debt ceiling. This situation had also led to payment delays of up to 10–14 days for contractors.

However, with the Centre stepping in, financial hurdles have been effectively cleared. A senior official from Chennai Metro Rail Limited (CMRL) mentioned that contractor invoices typically range from Rs 200 million for elevated corridors to Rs 400 million for underground sections.

In another major development, the long-pending Airport–Kilambakkam Metro Corridor has received approval from the Tamil Nadu state government. The 15.4 km extension project is estimated to cost around Rs 93.35 billion. The Detailed Project Report (DPR) has been forwarded to the Centre for its final approval.

Meanwhile, industry experts and stakeholders can look forward to the 5th edition of InnoMetro, India’s leading rail transportation expo. Explore the latest innovations in rail safety, infrastructure, signalling, and AI at the event.

Infrastructure Transport

13 Oct 2025

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