Tamil Nadu govt to sign MoU with railways in December for CMRL - MRTS merger
This long-awaited merger, which was announced by the Southern Railway, aims to streamline operations and create a truly integrated public transport network for the Greater Chennai Area.
CHENNAI: The Tamil Nadu government is set to sign a memorandum of understanding (MoU) with the Railways in December, allowing Chennai Metro Rail Limited (CMRL) to take over the Mass Rapid Transit System (MRTS). The transfer is expected to be completed by December 2027.
According to media reports, in a high-level meeting on Monday, the state government gave its preliminary approval for CMRL to manage, operate, and maintain the MRTS. The government also approved the Comprehensive Mobility Plan for Chennai, which is expected to be launched later this week. The MoU will be formally signed once the Railways provides its approval, likely in December.
This long-awaited merger, which was announced by the Southern Railway, aims to streamline operations and create a truly integrated public transport network for the Greater Chennai Area.
The approval, finalised on July 31, follows a detailed recommendation by the Southern Railway to the Railway Board and subsequent deliberations during the Full Board meeting on July 16. It paves the way for the Tamil Nadu Government and the CMRL to assume responsibility for the entire MRTS system.
All MRTS infrastructure assets, including tracks, bridges, signalling systems, electrification (OHE), land, and buildings, will be transferred to the Tamil Nadu Government/CMRL. Land that originally belonged to the State Government and is currently being used by the MRTS will be returned to the government. Southern Railway land used by the MRTS will be leased to the State Government.
EMU trains funded by the State Government will be returned to the state "as-is-where-is." EMUs owned by the Southern Railway and currently running on MRTS will remain in service for a two-year grace period free of charge (including maintenance). After this period, they must either be returned to the Southern Railway or purchased by the State Government at depreciated value.
The Southern Railway will provide free handholding and training to CMRL staff for operations and maintenance (infrastructure, rolling stock), with the SR staff continuing their current roles during the period at no cost to CMRL. The CMRL will recruit and train its own staff and establish maintenance infrastructure.
If the takeover isn't completed within two years, the Southern Railway may continue operations, charging the State Government on an actual cost basis. Joint committees will determine access charges and modalities for the MRTS trains using specific Southern Railway infrastructure (e.g., yards at Chennai Beach and Chennai Fort) after the merger.
