Chennai: Tamil Nadu Finance Minister Thangam Thennarasu on Friday urged Union Finance Minister Nirmala Sitharaman to release the Centre's share of Rs 7,425 crore for the Chennai Metro Rail phase-2 project as per the Public Investment Board's recommendation.
By recognising and implementing the project as a Central Sector Project (CSP), the Centre should pave the way for reducing the debt burden of the Tamil Nadu government, he said.
On September 12, Sitharaman told reporters in Coimbatore that despite the Centre facilitating Rs 21,000 crore borrowing for Tamil Nadu for the Chennai Metro's phase-2 project, the state had spent Rs 5,880 crore alone, the Minister noted.
"It is my duty to furnish correct and full information related to this," he said in a statement.
The fact is Rs 18,564 crore has been so far spent for this project, out of which Rs 11,762 crore was from the state government's own resources and Rs 6,802 was secured through borrowing, he said.
"However, the central government has so far not released even a single rupee, while its share is Rs 7,425 crore as per the recommendation of the Public Investment Board."
In 2017, the phase-2 project was recommended to the Centre. In January 2019, a 50:50 cost sharing (Centre/state) in addition to borrowing was proposed. In February 2020, the project cost was estimated at Rs 63,246 crore.
While Sitharaman termed the Metro Rail phase-2 as a state sector project, the Tamil Nadu government in 2017 had recommended to the union government implementation of the proposal only as a central sector project.
While it was under consideration of the Centre, by 2018, Japan International Cooperation Agency was for quick finalisation of the borrowing pact. Hence, in order to prevent chances of delay that may be caused by waiting for Centre's approval as a central project and considering public welfare, the Tamil Nadu began implementing this project.
Later, the project was taken up for consideration on August 17, 2021 at a meeting of the Public Investment Board, which proposed to the Union cabinet to implement it as a Central sector project. "We urge Union Finance Minister Nirmala Sitharaman to provide to the state, the union government's share of Rs 7,425 crore by recognising the Chennai Metro Rail phase-2 project as a central sector project as per the Central government's Public Investment Board's recommendation."
The Minister detailed similar projects of other cities including Bengaluru (Rs 30,399 crore), Kochi (Rs 1,957 crore), Nagpur (Rs 6,708 crore), Pune (Rs 910 crore) and Thane (Rs 12,200 crore) and said these have been approved as central sector projects with fund allocations. Also, states inlcuding Maharashtra, Gujarat and Karntaka have been allocated equity and subordinate debt (Budget 2024-25). However, nothing has been mentioned about Tamil Nadu.
"A doubt arises whether the Centre does so for political reasons, in order to cause financial constraints for the state government, which affects the people." Hence, in order to clear such doubts the Centre should release its share of Rs 7,425 crore.