The Tamil Nadu government is seeking the Union government’s help in rebuilding the MRTS in Chennai

Approval of the project could open the way for external financing and ease the financial pressure on the state. | Photo credit: J. Johan Sathyadas

The Tamil Nadu government has written to the Center requesting funds and a loan to revamp the Mass Rapid Transit System (MRTS) in Chennai.

The state government has pitched the proposal as a “rejuvenation of MRTS” project with a requirement that it can be taken up as a “central sector” project, sources said. The estimated cost of the project is nearly ₹6,600,000.

The move is part of the Tamil Nadu government’s efforts to hand over MRTS operations to Chennai Metro Rail Limited (CMRL) and modernize the system.

Sources said the advantage of moving the project as a “central sector” is that the capital portion will be equally distributed and external financial assistance will also go through if the project is approved. This will ease and prevent further burden on state finances, sources added.

Renovation of stations

The preliminary project report prepared for the renovation of MRTS stations has been sent to the Ministry of Housing and Urban Affairs (MoHUA).

If the Center and MoHUA approve the ‘MRTS Rejuvenation’ project proposal, it will then be forwarded to the Ministry of Economic Affairs to seek loan from external agencies.

The project will convert the MRTS system to CMRL standards by renovating stations, upgrading systems and modernizing trains. “The Center was positive and willing to approve the project,” the source said.

After years of waiting, the Railway Board has cleared MRTS takeover by CMRL in July 2025. However, the takeover process can begin once the MoU is signed between Southern Railway and the Tamil Nadu government.

Currently, the memorandum document is being discussed by the Railway Board. “We expect the railway board to approve in three weeks,” another source said.

The Railway Board nodded

Shifting the ‘MRTS Rejuvenation’ project as a ‘Central Sector’ project will also help ensure that the Railway Board agrees to the MoU document at the earliest, the source added.

The Chennai Unified Metropolitan Transport Authority (CUMTA), which was at the helm of this takeover process and coordinated between the state government and the railways, monitored the progress of the project. The organization will hold until CMRL’s takeover of MRTS is fully completed.

Published – 12 Jul 2026 05:14 IST