Pointing out that the Public Investment Board had recommended the Chennai Metro Rail Phase - II project as a Central Sector Project, Tamil Nadu Finance Minister Thangam Thennarasu on Friday reiterated the State government’s request to the Union Finance Minister Nirmala Sitharaman to grant the Union government’s share of ₹7,425 crore towards the implementation of Chennai Metro Rail Phase - II. The Minister also rejected Ms. Sitharaman’s contention that loans to the tune of about ₹21,000 crore was secured by the Union government and of which only about ₹5,880 crore was spent by the Tamil Nadu government for this project. “In fact, a sum of ₹18,564 crore has been spent for this project. Of this, Tamil Nadu government has spent ₹11,762 crore so far for this project,” Mr. Thennarasu clarified. In a statement, he said expenditure with loans have been to the tune of ₹6,802 crore. “But, the Union government has not released even a rupee so far, even though the Public Investment Board had recommended a share of ₹7,425 crore from the Union government.” Mr. Thennarasu further reiterated the Tamil Nadu government’s stand that the Union Budget for 2024-25 had “deceived” the State. He also pointed out that no allocation was made to Chennai though Ms. Sitharaman had mentioned in her Budget speech that funds would be allocated for metro rail projects in Kochi, Chennai, Bengaluru, Nagpur and Nasik. “After this announcement, the Union government approved projects -- ₹30,399 crore for Bengaluru, ₹1,957 crore for Kochi, ₹6,708 crore for Nagpur, ₹910 crore for Pune and ₹12,200 crore for Thane by considering them as Central Sector Projects. But, the Union government has not made any allocation for Chennai so far,” Mr. Thennarasu underlined. In the Union Budget for 2024-25, sufficient funds and equity and subordinate debt was allocated to Maharashtra, New Delhi, Karnataka, among other States, he said and further questioned: “But, there is no mention of any allocation to Tamil Nadu in the Union Budget. Why has this not been allocated to Tamil Nadu in the current Budget?” He further questioned: “Why is Tamil Nadu being treated like a child of a stepmother? It raises doubt if this is being done over political reasons to affect the projects that would affect the general public and to cause a crunch in the State funds.” To clear such doubts, the Union government must grant its share of share of ₹7,425 crore towards the implementation of Chennai Metro Rail Phase - II, he reiterated. Mr. Thennarasu’s statement followed Ms. Sitharaman’s comments to journalists on Thursday over the funds for the Chennai Metro Rail Phase - II project. He said it was his duty to clarify some points in this regard. The proposal for Chennai Metro Rail Phase - II was recommended by the Tamil Nadu government to the Union government in April 2017, he said. In January 2019, the project was recommended for obtaining funds from international financial institutions with detailed project report mentioning a 50:50 share from the State and the Union governments. In February 2020, After consultations with the Union Ministry of Housing and Urban Affairs, the total cost of the project was estimated at ₹63,246 crore. As for Ms. Sitharaman’s contention that the Chennai Metro Rail Phase - II was being implemented as a “State Sector Project”, Mr. Thennarasu said the Tamil Nadu government had in 2017 recommended it as a Central Sector Project to the Union government. On the request of the Japan International Cooperation Agency (JICA) that signing was to be made at once but it was under the consideration of the Union government, Mr. Thennarasu said that the Tamil Nadu government implemented the project, “anticipating the Union government’s approval of the project as Central Sector Project, to avoid further delay and for the welfare of the general public.” Since the approach was “accepted by the Union government”, the project was taken up by the Public Investment Board’s meeting on August 17, 2021 and it “recommended the project to the Union government as a Central Sector Project,” Mr. Thennarasu pointed out.
Published - September 14, 2024 01:11 am IST
