Chennai Metro Phase 2 Gets Rs 3000 Crore Boost from Centre

The Union government has released Rs 3,000 crore for Chennai Metro Rail’s Phase 2 project during the current financial year, reaffirming its strategic commitment to sustainable urban mobility in India’s southern metropolis. The Ministry of Housing and Urban Affairs disbursed the Rs 3,000 crore by July 28, as part of a record Rs 8,445.8 crore allocation for 2025–26. This allocation marks India’s highest for any metro project this year.

The released funds include Rs 1,841.2 crore as equity contribution, Rs 158.8 crore in subordinate debt, and Rs 1,000 crore routed through pass-through assistance from international agencies. This allocation comes after the central government reclassified Phase 2 as a central sector scheme in October 2024, removing procedural bottlenecks that had previously delayed financial support.

Also Watch: An Exclusive Interview with Sanjeev Jaiswal (IAS), CEO MHADA

A senior official associated with the Chennai Metro Rail project confirmed that an additional Rs 5,400 crore was released prior to March 2025, bringing the total financial support to approximately Rs 8,400 crore. “The Centre has been disbursing funds steadily, not in fixed tranches, but based on project needs. This flexible approach has kept construction timelines on track,” the official noted.

Spanning 118.9 km over three major corridors, Phase 2 is poised to redefine Chennai’s urban transit landscape. The project aligns with India’s broader goals of creating net-zero carbon cities by promoting public transport, reducing traffic congestion, and curbing vehicular emissions. By encouraging a modal shift from private vehicles to mass transit, Chennai Metro Phase 2 is expected to significantly improve air quality and accessibility in the region.

The funding eases Tamil Nadu’s financial burden and strengthens its push for green infrastructure. Officials say smooth fund flow bodes well for future metro projects. Meanwhile, calls grow for central approval of new lines in Kilambakkam, Madurai and Coimbatore to promote equitable urban development across the state.

Also Read: Chennai MRTS To Merge With Metro For Seamless Connectivity

Chennai Metro Phase 2 Gets Rs 3000 Crore Boost from Centre