The Tamil Nadu government has written to the Centre seeking funds and loan assistance to revamp the Mass Rapid Transit System (MRTS) in Chennai.
The State government has pitched this proposal as ‘MRTS Rejuvenation’ project with a request that it may be taken up as a ‘Central sector’ project, sources said. The estimated cost of the project is nearly ₹6,600 crore.
This move is part of the Tamil Nadu government’s efforts to hand over the MRTS operations to Chennai Metro Rail Limited (CMRL) and upgrade the system.
Sources said the advantage of moving it as a ‘Central Sector’ project is that the equity part will be equally shared and external funding assistance will come through as well, if the project is approved. This will ease and avoid further burden on the State’s finances, sources added.
The preliminary project report prepared to renovate the MRTS stations has been sent to the Ministry of Housing and Urban Affairs (MoHUA).
If the Centre and MoHUA approve the ‘MRTS Rejuvenation’ project proposal, it will then be forwarded to the Department of Economic Affairs for seeking loan from external agencies.
The project will transform the MRTS system to CMRL standards by refurbishing the stations, modernising the systems, and upgrading the trains. “The Centre has been positive and keen to approve the project,” a source said.
After years of wait, the Railway Board cleared the CMRL takeover of MRTS in July 2025. But the takeover process can commence only when the MoU is signed between the Southern Railway and the Tamil Nadu government.
At present, the MoU document is being examined by the Railway Board. “We expect that the Railway Board’s approval will come in three weeks,” another source said.
Moving the ‘MRTS Rejuvenation’ project as a ‘Central Sector’ project will also help in ensuring the Railway Board giving its nod to the MoU document as early as possible, source added.
Chennai Unified Metropolitan Transport Authority (CUMTA), which has been at the helm of this takeover process and coordinating between the State government and the Railways, has been monitoring the project’s progress. The organisation will handhold until the takeover of MRTS by CMRL is entirely completed.
Published - July 12, 2026 05:14 am IST