Tamil Nadu Government's CMRL Takeover of Chennai MRTS Awaits MoU Approval; ₹4,200 Crore Upgrade Planned
Chennai Metro Rail Limited (CMRL) is set to take full control of the city's Mass Rapid Transit System (MRTS), with the Tamil Nadu government preparing to acquire Indian Railways' remaining 33 per cent stake in the joint venture. The state currently holds 67 per cent and is expected to pay between ₹600 crore and ₹700 crore for the Railways' share.
Southern Railway has granted formal approval for the transfer of all MRTS infrastructural assets, including tracks, bridges, signalling, electrification, land and buildings, along with operations and maintenance, to CMRL. A detailed MoU formalising the transfer remains under preparation.
Once completed, the 25 km MRTS corridor between Chennai Beach and St Thomas Mount will come fully under CMRL, marking what officials describe as the first rail-to-metro takeover of its kind in India. The state plans to upgrade the corridor to metro standards over a two-year period, targeting a metro-model system by December 2027.
If the state proceeds with a full upgrade of the Chennai Beach–Velachery MRTS corridor to metro standards, the estimated cost is around ₹4,200 crore, though officials say the final cost will depend on the extent of system replacement and infrastructure works required. The state is separately in discussions with the World Bank for financing of about ₹4,000 crore to fund new coaches, station refurbishment, escalators and last-mile connectivity improvements. Once the MoU is signed, CMRL plans to appoint a Project Management Consultant to prepare a Detailed Project Report before issuing construction and renovation tenders.