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The Memorandum of Understanding (MoU) for Chennai Metro Rail to take over the Mass Rapid Transit System (MRTS) is now expected to be signed in January 2026, according to sources. Earlier, the Tamil Nadu government and the Railways planned to complete this agreement in December, but more time is needed
to finalise details and reach a complete agreement with the Railways.
Final Costing Not Yet Fixed
If the State decides to upgrade the entire MRTS network to the standards of Chennai Metro Rail, the project may cost around ₹4,200 crore. However, the exact takeover cost has not yet been fixed. Officials say the final amount will depend on how many systems within MRTS need to be replaced or upgraded.
Grant of Loans by the World Bank
Chennai Metro Rail Limited (CMRL) officials confirmed that the State government has been in talks with the World Bank for a loan to support this project. CMRL is also preparing a tender to purchase 25 new three-coach air-conditioned trains. These tenders will be issued only after the MoU is officially signed. CMRL has already created a preliminary report outlining the improvements required at stations along the Chennai Beach-Velachery MRTS route. This report highlights areas that need immediate repairs and places where station facilities must be upgraded.
Signing of MoU
Once the MoU is signed, CMRL plans to hire a project management consultant to prepare a detailed project report. This will clearly list all the work needed to modernise the stations and upgrade facilities along the corridor. After that, bids for construction and renovation work will be floated.
The Chennai Unified Metropolitan Transport Authority (CUMTA), which is overseeing the takeover, has suggested forming a dedicated organisation to handle all major rail infrastructure projects. This new body may be called the Tamil Nadu Rail Development Corporation (TNRail) and could be responsible for projects like the MRTS-CMRL merger.
