Tamil Nadu CM Stalin Catches Up With PM Modi To “Sweeten” Ties

In an indication of “sweetening” of ties between the DMK and the BJP, Tamil Nadu chief minister MK Stalin flagged his meeting with PM Modi as “cordial” as he raised all outstanding issues of his state with the Centre such as requesting release of the Centre’s share for Phase 2 of the jointly implemented Chennai Metro, noting that several states which initiated their metro projects after TN have already received their funds. With traditional ally Congress exploring ties with AIADMK and other alternatives, it looks like the DMK also seems to be looking for a fall back option. Stalin’s reachout comes a fortnight after FM Nirmala Sitharaman’s tough talk that the Phase II of Chennai Metro Rail was a state project and ought to be funded by the state, with the Centre chipping in with only 10% of the total cost. Of the total cost of Rs 63,246 crore, TN is expected to invest Rs 22,228 crore while the Centre Rs 7,425 crore. An additional Rs 33,593 crore was obtained through various multilateral agencies. “However, only 27% of the loan, equaling to Rs 5,880 crore, has been utilised by the state. As per the FRBM rules, up to 3% GSDP can be borrowed (by the state), and since this project is categorised as a state sector project, the loan should fall within the FRBM limit,” she said.TN cannot blame Centre over funds. Phase 1 of the Metro Rail project, which started in 2015, covered 54 km and was initiated as a central sector scheme, with 60% of the cost being covered by external loans. Stalin also urged for immediate release of Samagra Shiksha funds, currently withheld due to the non-implementation of the NEP. Interestingly, Stalin also met with Congress leader Sonia Gandhi.