Like Chennai Metro Phase 2, the Central government's funding for Coimbatore's Metro project remains uncertain. TN turns to the Asian Infrastructure Investment Bank for financial support and its officials are set to visit Coimbatore for an on-site inspection today.
Coimbatore: In a significant development for urban transportation in Tamil Nadu, the state government is actively seeking alternative funding sources for the proposed Metro Rail projects in Coimbatore and Madurai. This move comes amidst uncertainty over central government funding, with officials from the Asian Infrastructure Investment Bank (AIIB) scheduled to visit Coimbatore today for an on-site inspection.
Following the successful implementation of the Metro Rail system in Chennai, both Coimbatore and Madurai are slated to receive similar projects. However, these plans are currently awaiting approval from the Ministry of Housing and Urban Affairs (MoHUA), Government of India.
The urgency for alternative funding has been precipitated by the central government's hesitation regarding the Tamil Nadu government's request for at least a 50:50 funding ratio for the second phase of the Chennai Metro project. This phase, covering a distance of 119 km, is being expedited at a cost of Rs. 63,246 crore. The uncertainty surrounding this funding model has raised questions about whether the Government of India will consider a similar funding ratio for the proposed projects in Coimbatore and Madurai.
Tamil Nadu Finance Minister Thangam Thennarasu recently highlighted the funding challenges during a meeting with the Union Finance Minister. Speaking at a pre-budget meeting, Thennarasu pointed out that despite the Rs. 63,246 crore Chennai Metro phase-2 project being recommended by the Public Investment Board in 2021, it has not received approval from the Cabinet Committee on Economic Affairs for the past three years. As a result, the state government has been forced to bear the entire expenditure, leading to significant difficulties and delays in project execution.
According to the recent state budget announcement, Detailed Project Reports (DPRs) have been prepared and submitted to the Union government for approval. The Coimbatore Metro Rail project, planned along Avinashi and Sathyamangalam Road, is estimated to cost Rs 10,740 crore. Similarly, the Madurai project, which aims to connect Thirumangalam and Othakkadai, has a projected cost of Rs 11,368 crore.
In light of the funding uncertainty, informed sources reveal that the Government of Tamil Nadu is actively engaging with international financial institutions to secure funding for these crucial infrastructure projects. The Asian Infrastructure Investment Bank has emerged as a potential lender, with its representatives set to conduct an on-site inspection in both Coimbatore and Madurai.
This visit by AIIB officials is seen as a critical step in the loan approval process. During their inspection, the officials are expected to assess the feasibility of the projects, their potential impact on urban mobility, and the overall economic benefits they could bring to these rapidly growing cities.
The Tamil Nadu government's proactive approach in seeking alternative funding demonstrates its commitment to improving urban infrastructure and public transportation in key cities beyond the state capital.
Following their on-site inspections in Coimbatore and Madurai, the AIIB representatives are scheduled to meet with the Tamil Nadu Finance Secretary this Friday. This meeting is expected to be crucial in determining the potential for AIIB funding and could pave the way for formal loan agreements.
The outcome of these discussions and inspections is eagerly awaited by city planners, local authorities, and residents of Coimbatore and Madurai.