Chennai Metro pushes for fresh funding to expand its Phase I fleet

Chennai Metro is preparing to expand its network with 28 new trains, a much-needed move as passenger numbers continue to rise across the city’s corridors. The plan, first drawn up nearly two years ago, was aimed at strengthening the Phase I and Phase I extension stretch of about 54 km. However, the project has been delayed due to challenges in finalising an agreement with a multilateral bank. Now, Chennai Metro is looking inward and considering domestic banks for financial support to make this plan a reality.

When Chennai Metro initially approached the State government with the proposal, it received approval without delay. The Centre also cleared the project in August 2024, forwarding the request for funding discussions with an international lending agency. Despite several rounds of talks, consensus could not be reached on the loan clauses, and the agreement remained unsigned. This uncertainty has forced Chennai Metro Rail Limited (CMRL) to take a different approach by exploring Indian banks for the funding requirements.

 Why Chennai Metro is turning to Indian banks for support

Officials say the tender documents for the new trains are already prepared, but the absence of a funding agreement stalled the floating of tenders. The reliance on a multilateral bank was primarily due to the advantages it offered lower interest rates and flexible repayment options. However, with time running out and passenger demand increasing steadily, CMRL believes domestic financial institutions can now play a critical role in moving the project forward.

The addition of 28 six-coach trains is expected to significantly reduce peak-hour congestion. Daily ridership has been witnessing gradual growth as commuters shift towards faster and more reliable urban mobility. For the Phase I and Phase I extension networks, which already see heavy passenger movement, the introduction of new trains will not only bring comfort but also improve frequency and reduce waiting times.

The search for domestic funds signals a shift in CMRL’s approach. While the earlier plan relied heavily on the benefits of an international loan, the delays proved costly in terms of time. Now, by engaging with Indian banks, Chennai Metro hopes to finalise funding more quickly and avoid further delays. Officials indicate that discussions with potential lenders are already underway and could conclude in the coming months.

 Chennai Metro Ridership Growth and Demand for More Trains

Chennai Metro’s efforts are also tied to the larger vision of creating a seamless public transport system for the city. Phase I of the network has already played a key role in easing travel across important routes, and with more trains, its impact will only increase. The focus is on ensuring commuters are not burdened by long waiting periods or overcrowded compartments during peak hours.

In the long term, additional trains are also expected to complement upcoming projects and extensions, ensuring smooth integration of services across phases. As Chennai continues to grow, the demand for efficient public transport will only rise, making investments in new rolling stock essential.

The journey to secure funding has highlighted the challenges of balancing international financial negotiations with immediate urban mobility needs. While the option of a multilateral bank may have offered certain advantages, the decision to move forward with domestic lenders underscores CMRL’s urgency in meeting the city’s requirements. Also Read: India To Proudly Launch it’s First Port-Based Green Hydrogen Pilot Project at V.O. Chidambaranar Port, Tamil Nadu: Sept 2025

Conclusion

Chennai Metro is on track to add 28 new trains for its Phase I network, with domestic funding now set to replace delayed international loans. This step, though unexpected, could speed up the expansion and give daily commuters a more comfortable and reliable travel experience.