Budget 2024: TN urges FinMin to provide Rs 63,000 cr for CMRL Phase II

The central project recommended by the Public Investment Board in August 2021 was awaiting approval of the Cabinet Committee on Economic Affairs for the last three years

Tamil Nadu government on Saturday urged Union Finance Minister Nirmala Sitharaman to make provisions in the upcoming union budget and sanction Rs 63,246 crore for the Chennai Metro Rail Phase II project for which the foundation stone was laid in November 2020.

This central project recommended by the Public Investment Board in August 2021 was awaiting approval of the Cabinet Committee on Economic Affairs for the last three years, Tamil Nadu Finance Minister Thangam Thennarasu said. Pending this approval, the entire expenditure is being borne by the state from its own funds, he said.

"The delay in approval is making a severe impact on our state finances and has slowed the pace of implementation of this project, causing hardships to the people of Chennai. I urge the Union Government to immediately sanction the project, as originally envisaged, and ensure adequate provisions are made in the Union Budget 2024-25," he said.

He was speaking at the meeting of state finance ministers with Sitharaman in the national capital.

Thennarasu drew Sitharaman's attention to the Rs 37,906 crore disaster relief sought by the state to tide over the loss caused by two massive natural disasters in quick succession in December 2023, and sought the Centre to allocate Rs 3,000 crore to Tamil Nadu to undertake necessary restoration works.

Merging the cesses and surcharges into the basic rates of taxation so that the states received their legitimate share in devolution following the termination of GST compensation regime in 2022, and equal sharing of cost (50 percent) in implementing all central schemes were among the other demands.