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MoU for Chennai Metro Rails takeover of MRTS likely to be inked in Jan.

The State government and Railways were initially expected to sign the MoU in December. However, more time is needed to arrive at a consensus and formalise the process, says a source.

The Memorandum of Understanding (MoU) for the Chennai Metro Rail’s takeover of the Mass Rapid Transit System (MRTS) is likely to be signed in January 2026, sources said.

The Tamil Nadu government and Railways were initially expected to sign the MoU in December. However, it may take more time to arrive at a consensus after discussions with Railways and to formalise this process, according to a source.

If the State government plans to completely elevate MRTS to the Chennai Metro Rail’s standards, it may require nearly ₹4,200 crore for this project. “The total takeover cost has still not been finalised. It depends on factors such as whether all the systems in the MRTS network need to be changed. Only based on this decision, will the final cost be arrived at,” he added.

According to officials of the Chennai Metro Rail Limited (CMRL), the State government has been holding discussions with World Bank for a loan to fund this project.

“We are drafting a tender for procuring 25 three-coach air-conditioned trains initially. After the MoU is signed, the bids will be floated,” an official said.

The CMRL has prepared a preliminary project report to upgrade the stations along the Chennai Beach-Velachery corridor. The report broadly identifies areas that need immediate attention and spaces that require revamp.

“Post the signing of the MoU, we will rope in a project management consultant who will prepare a detailed project report, chalking out the work involved in the station improvement along this corridor. Based on this, we will float bids for the revamp,” another official said.

The Chennai Unified Metropolitan Transport Authority (CUMTA), which is helming this takeover project, has recommended in the Comprehensive Mobility Plan an exclusive body to enhance rail infrastructure.

The body, which could be named Tamil Nadu Rail Development Corporation (TNRail), could handle projects such as the MRTS takeover by the CMRL, the CUMTA added.

Published – December 12, 2025 12:23 am IST

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