Amidst the war of words between the DMK and the BJP regarding funding for Phase 2 of the Chennai metro rail project, the Tamil Nadu government’s fact-checking unit has refuted the BJP’s claim that the Union government is providing funds of Rs 63,246 crore towards the project.
Responding to a claim made by BJP Tamil Nadu IT wing secretary SG Suryah on October 3, the TN Fact Checking unit pointed out that only Rs 7,425 crore of the total funds is being provided by the Union government. The state government, meanwhile, will be spending Rs 22,228 crore. The remaining Rs 33,593 crore will be arranged as loans by the Union government from agencies. Previously, the onus of securing these loans had been on the state government.
This breakup of funds is also mentioned in a statement by the Union government’s Press Information Bureau (PIB), which states that the loans will be procured from agencies including the Asian Development Bank, Asian Infrastructure Investment Bank, New Development Bank, and the Japan International Cooperation Agency.
The PIB statement further says the loans procured by the Union government have to be repaid by the state government in the event Chennai Metro Rail Limited (CMRL) is unable to.
In a caveat at the end, the PIB press release reads: “The responsibility of repayment of the loan will be on the company. The repayment would normally start after a moratorium of at least five years, i.e., more or less after completion of the project. In the event of CMRL [Chennai Metro Rail Limited] not being in a position to repay the loan, it would be the obligation of the state government to provide financial support to the company to enable the repayment in those years.” The CMRL is a joint initiative between the Union and state governments.
The exchange of words between the BJP and the DMK had begun earlier this week, after the Union Cabinet approved the Chennai Metro Rail project’s Phase 2, comprising three corridors, with an outlay of Rs 63,246 crore.
Tamil Nadu BJP president K Annamalai had later doubled down on SG Suryah’s claim, saying the Union government will fund “65% of the Chennai metro rail project after it was approved by the Cabinet.” This 65%, however, includes the Rs 33,593 crore loan that the CMRL or state government will have to repay.
The Chennai metro rail project has been a bone of contention between the BJP and the DMK for some time. Earlier this year in February, Chief Minister MK Stalin had written to Prime Minister Narendra Modi slamming the Union government for its repeated delays in approving phase 2 of the project. At the time, the CM had pointed out that though budgetary allocations were made during the financial year 2021-22, approval from the Cabinet Committee on Economic Affairs (CCEA) has been pending for over two years, leading to delays in completing the project within the set timelines.