T.N. CM Stalin meets PM Modi in Delhi; reiterates demands on Chennai Metro Rail, Samagra Shiksha funds

Tamil Nadu Chief Minister M.K. Stalin on Friday (September 27, 2024) called on Prime Minister Narendra Modi in New Delhi and handed him a memorandum containing three demands.

Tamil Nadu Chief Minister M.K. Stalin on Friday (September 27, 2024) called on Prime Minister Narendra Modi in New Delhi and handed him a memorandum containing three demands.

They were: an approval under 50:50 equity sharing basis between the Union and Tamil Nadu governments for the implementation of the Chennai Metro Rail Phase-II project; the release of funds under Samagra Shiksha; and a permanent solution to secure the traditional fishing rights of Indian fishermen.

The progress of the Chennai Metro Rail project has slowed down due to the fiscal constraints faced by the State government under the Fiscal Responsibility and Budget Management Act, Mr. Stalin said, adding that the slowdown from last year was affecting the current fiscal, limiting the total project expenditure to ₹8,000 crore.

“Consequently, the commissioning dates of various stages are being delayed by almost a year, pushing the final completion date from December 2027 to December 2028,” the memorandum said.

For the Phase-II project, Chennai Metro Rail Limited (CMRL) needed to secure a principal debt of ₹33,593 crore and subordinate debt of ₹17,434 crore. Without corresponding equity contribution, it would result in an unfavourable debt-to-equity ratio, potentially rendering CMRL unsustainable as a going concern. If the project receives funding as recommended by the Public Investment Board, CMRL will get an equity infusion of ₹10,814.8 crore.

“However, as a State-sector project, this equity infusion by the State government alone is not possible as it will affect the company’s ownership structure. Equal equity participation by both the governments is, therefore, absolutely necessary,” Mr. Stalin contended.

The Project Approval Board for Samagra Shiksha has approved an outlay of ₹4,305.66 crore for 2024-25, with a committed liability of ₹3,585.99 crore for Tamil Nadu. Out of this, the central share of 60 percent amounts to ₹2,151.59 crore, Mr. Stalin said. “In spite of having sent the proposal for the release of first instalment fund (25 percent) on April 30, 2024, from the State Project Directorate, Tamil Nadu, no amount has been released so far,” the CM added.