Nirmala Sitharaman, Minister of Finance and Minister of Corporate Affairs, speaking to A Hindu reporters at their office on Saturday. | Photo Credit: Srinath M
Union Finance Minister Nirmala Sitharaman reiterated on Saturday (September 21, 2024) that the Tamil Nadu Government has made a deliberate decision to implement the Chennai Metro Rail Phase II project “as a State sector initiative; therefore, all the costs of the work will be with the Government.”
In an interview with reporters of The Hindu Group of Publications at The Hindus Headquartered in Chennai, the Finance Minister, while replying to a question in the Public Investment Board recommending Rs 7,425 crore for the Chennai Metro Rail phase II project, which was not cleared by the Cabinet Committee on Economic Affairs, said: “If there is equity participation from the Centre, it would be in the range of Rs 7,400 crores. Although, in 2018, the State government had decided to implement Chennai Metro Rail phase II. Therefore, the entire cost of the project will be with the Government, there will be no equity participation.”
Also Read: Chennai Metro Rail Phase II: TN presses Union government for its Rs 7,425 crore share
He said: “There may be less money coming in from the Centre. These terms are very well placed and what comes out of these terms are all well decided. The mission of the Department of Economic Affairs is to assist the State government in obtaining international loans. The Center is doing it continuously and has planned foreign loans of up to ₹ 32,000 crores. There is continuous communication between the Center and agencies so that the State can get money.”
The Minister alleged that the State Government had not even spent its R6,000 crores. “There was an understanding between the State and the Center that at the right time, when and when, if it is possible for us. [the Centre] to take over, we will take it to be a Central sector programme. But you [the Tamil Nadu Government] keep doing the work so that the money will come and you can use it.”
Also Read: Underwater tunnel from Greenways Road to Adyar of Chennai Metro Rail phase II project ready
He also said “I understand the state’s frustration.” Because if it is a public sector program, all borrowing will be in the State’s full borrowing account and the Financial Responsibility and Budget Management (FRBM) limit will obviously be exceeded. Therefore, it is difficult for governments to carry out such large-scale projects. That is why most of the metro rail projects across the country are funded by the Centre [loan is on the Centre.]”
Opposing the allegations of the State that the Center is refusing or delaying the funding of this program, he said, “The political narrative will have to have a certain sense of responsibility. I find in the opposition today a sense of wanting to rush into accusations without sufficient factual support.”
Responding to a question on the political narrative put forward by the DMK during the 2024 Lok Sabha election campaign that for every one rupee the Government contributes to the central pool, only 29 rupees are returned, he said the political narrative is one-sided. . Whether it cost me a seat or not, especially in matters of revenue, I was on the side of caution rather than speaking carelessly.”
To a question about the BJP’s outlook in the run-up to the 2026 Tamil Nadu Assembly elections, he said the party has been working hard for the last two or three years. “It’s the past [BJP State] the presidents also made sure that the agenda of the BJP was carried forward. ”
According to him, even if the party did not win seats in the 2024 Lok Sabha elections in Tamil Nadu, it had an impact. He said: “We will ensure that we are able to reach all levels of the 2026 elections. It is still too late to comment on alliances and the leadership of the party will make a decision about it.”
While replying to a question about the State’s allegations that the Center did not have enough funds for disaster relief due to the Chennai and Thoothukudi floods, he said that the Fourteenth Finance Commission was formulating a mechanism for allocating funds through the National Disaster Response Fund (NDRF) and the District Disaster Relief Fund. Response Fund (SDRF). “The Central Government will not be able to adjust it to favor or oppose any State. The Finance Commission made it an institutional arrangement for countries to receive money in advance for disaster relief.”
He also pointed out that the Center has taken steps to organize loans through different financial institutions to prevent disasters in disaster-hit areas. He said that following the Chennai floods in 2015, the Center had planned to borrow Rs 9,000 crore to build drainage infrastructure in Chennai. However, we could not escape the floods during Cyclone Michaung. “Where did that R9,000 crore go?” he asked.
Published – September 22, 2024 11:16 pm IST