Tamil Nadu, Dec 09 : The Tamil Nadu government is set to acquire Indian Railways’ 33 per cent stake in Chennai’s Mass Rapid Transit System (MRTS), giving the state full ownership of the 25-km network that has served the city since 1995. Sources told Business Standard that the government, which already holds 67 per cent of the joint venture, is expected to pay between ₹600 crore and ₹700 crore for the Railways’ share. A memorandum of understanding (MoU) finalising the arrangement is likely to be signed later this month or in January 2026.
The MRTS line runs from Chennai Beach to St. Thomas Mount, and its full transfer to Chennai Metro Rail Ltd (CMRL) marks the first-ever rail-to-Metro takeover in India. Senior Southern Railway officials confirmed that formal approval for the transfer was granted on July 31, 2025. The transfer includes all infrastructural assets—tracks, bridges, signalling, electrification, land, and buildings—along with operations and maintenance responsibilities.
As part of the plan, the Tamil Nadu government is in discussions with the World Bank for a loan of around ₹4,000 crore to upgrade the MRTS and integrate it with the Chennai Metro system. The funding is expected to support new coaches worth about ₹1,000 crore, refurbishment of nearly 20 stations, installation of escalators, and development of surrounding infrastructure within a 500-metre radius. Enhancing last-mile connectivity is also part of the project, which aims to convert the MRTS into a full Metro-standard system by December 2027.
The MRTS was initially conceptualised in the 1970s by DMK leader M. Karunanidhi and formally sanctioned in 1984 under AIADMK chief minister M.G. Ramachandran, with services commencing in 1995. The current acquisition push was accelerated after Chief Minister M.K. Stalin raised the issue with Prime Minister Narendra Modi at a NITI Aayog meeting in May 2025, helping fast-track Railway approvals.
The transfer aligns with the Chennai Unified Metropolitan Transport Authority’s (CUMTA) broader vision to create an integrated, sustainable urban transport ecosystem, reducing peak travel times from 90 minutes to around 60 minutes by 2048. Of the total ₹2.27 trillion planned investment for the city’s public transport, ₹1.92 trillion is dedicated to urban rail and related infrastructure.
A Southern Railway official said, “This merger represents seamless multimodal integration across Metro, MRTS, suburban rail networks, and bus services in Chennai, showcasing strong coordination between the Railways and Tamil Nadu government to enhance urban mobility.”