Chennai Bags Highest Metro Allocation with ₹8,445 Crore for Phase II

In a major boost to Chennai’s urban transit ambitions, the Union government has sanctioned ₹8,445.8 crore for Phase II of the Chennai Metro Rail project the highest allocation to any metro project in the country this financial year. This accounts for nearly one-fourth of the total ₹31,755 crore national outlay for metro development, according to a recent RTI response.

This marks the first time Chennai has topped the list of metro funding recipients. The jump follows the Centre’s October 2024 approval to classify Phase II as a centrally-assisted project, ending a prolonged delay of over three years in financial clearance. Until then, Tamil Nadu had been forced to fund the project independently, which strained its borrowing limits and delayed contractor payments by 10 to 14 days.

“Since central funding began, there have been no constraints in clearing payments,” a senior Chennai Metro Rail Limited (CMRL) official said. Contractor bills typically range from ₹20 crore for elevated sections to ₹40 crore for underground stretches, the official added.

The financial relief has also unblocked another key project the long-stalled Airport-Kilambakkam metro extension. The state has cleared the 15.4-km stretch, and central approval is expected soon. Estimated at ₹9,335 crore, the project is part of the Phase I extension and had been delayed for over five years due to repeated design changes.

The final design proposes a dual-layer structure along GST Road, with an elevated road on the first level and metro tracks above it. The corridor will include 13 stations and aims to significantly ease traffic congestion at Chennai’s southern entry points.

“This is a long-overdue development,” said Tambaram-based resident-activist Dayanand Krishnan, who filed the RTI that revealed the funding details. “The corridor could transform daily commutes for nearly 25 lakh residents in growing suburbs like Pallavaram, Chromepet, and Tambaram. Daily ridership is expected to cross 1.5 lakh once it opens.”

With the financial and design hurdles now addressed, Chennai’s metro network is poised for a major expansion.