The Central Government has decided to bear about 65 percent of the estimated cost of Chennai Metro Rail Project Phase-2.
A release issued by the Press Information Bureau (PIB) said, ‘The Union Cabinet has recently approved the Chennai Metro Rail Project Phase 2 as a Central Sector Project.
The central government will finance about 65 percent of the estimated cost of Rs 63,246 crore. This decision has been taken at a time when Tamil Nadu Chief Minister MK Stalin had recently met Prime Minister Narendra Modi.
In fact, till now the project was being implemented as a State Sector Project, with the responsibility of project financing primarily falling on the Government of Tamil Nadu, which was about 90 per cent of the estimated project cost.
As per the Metro Rail Policy 2017, the role of the central government was to finance 10 per cent of the project cost excluding land cost and some other items.
According to the release, the Central government has also assisted the state government in directly raising loans of Rs 32,548 crore from bilateral and multilateral agencies.
Of this, about Rs 6,100 crore has been utilized so far. With the recent approval, the Central Government will now finance approximately 65 per cent of the estimated cost of Chennai Metro Phase 2.
The financing will include equity and subordinated debt of Rs 7,425 crore plus the entire required debt of Rs 33,593 crore. The remaining 35 percent of the estimated cost will be funded by the state government.
Chief Minister Stalin thanked PM Modi
CM MK Stalin thanked Prime Minister Narendra Modi for the approval of Chennai Metro Rail Project Phase-2. “Thank you, Honorable Prime Minister Narendra Modi, for accepting our request during my last meeting with you and approving the second phase of the Chennai Metro Rail project,” Stalin said in a post on social media.
The long pending demand of the people of Tamil Nadu has now been accepted. We are confident of completing this project as soon as possible.
Earlier on September 27, after the meeting with PM Modi in New Delhi, Stalin had posted, ‘Had a cordial meeting with Honorable Prime Minister Thiru Narendra Modi, where I discussed key issues related to Tamil Nadu. Prompt and positive action is expected from the Prime Minister for the benefit of Tamil Nadu.
What message is the central government trying to give?
The way the Central Government seems to be kind to Tamil Nadu, political implications are being drawn from it. It is believed that this step of the Modi government is an attempt to end the long standing deadlock between the Center and Tamil Nadu.
Also, there may be a deep political message hidden behind it. In fact, DMK is a major component of the India alliance.
BJP leaders believe that this decision has reduced the tension between the party and the Center with the DMK government. Also, ‘demanding’ NDA allies may also be reined in.
An RSS leader termed the Centre’s move as strategic. He said that its aim is to show BJP being cooperative even with opposition ruled states.
This will help in building good relations with DMK. Besides, the message to NDA allies will be that we have friends, even in the India alliance. We pay attention to everyone’s demands which will strengthen the Centre’s position.
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