Chennai Metro Phase 2 Gets Record Funding
RAILWAYS & METRO RAIL

Chennai Metro Phase 2 Gets Record Funding

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.

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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code