Behind Centre’s nod for Chennai Metro II, signal to NDA allies and DMK

The non-participation of the Centre so far had left the state in a difficult financial position, since it had already announced Phase II of the project and had to politically go ahead . Tamil Nadu had to take it forward as a state sector project instead of the originally planned joint sector project.

For over three years, the Centre’s delay in funding the Chennai Metro Phase-II had been a sore point between the BJP and the DMK, with the latter calling it a clear case of alleged bias against the Opposition-ruled states, particularly Tamil Nadu.

The Cabinet clearance on Thursday was welcomed by the DMK-led Tamil Nadu government, with CM Stalin thanking PM Modi for it. Clearly, the Modi government’s move appears to resolve a prolonged standoff between the Centre and Tamil Nadu, but also conveys a deeper political message aimed at not only the DMK— a key constituent of the INDIA alliance — but also the BJP’s own NDA allies at the national level.

BJP leaders now say the decision not only lowers the party and the Central government’s tension with the DMK dispensation but also keeps the party’s “increasingly demanding” NDA allies in check.

Stalin thanked PM Modi for “accepting our request during my last meeting with you” and for addressing “this long-pending demand” of the Tamil Nadu people. In state political circles, the DMK chief’s reaction was perceived as “showing unusual warmth” towards Modi.

A state RSS leader called the Centre’s move “strategic” which, he said, was meant to show the BJP as being “cooperative, even with the Opposition-ruled states”. “With JD(U) chief Nitish Kumar and TDP president Chandrababu Naidu becoming more demanding, this would help to create cordial relations with DMK while signalling to NDA allies that we have friends, even in INDIA bloc, and that we can accommodate everyone’s demands,” the leader said.

The Modi government depends critically on both the TDP and the JD(U) as the BJP fell short of the majority mark of 272 in the recent Lok Sabha elections, winning 240 seats. The TDP and the JD(U) got 16 and 12 seats respectively.

DMK leader T K S Elangovan told the media that the Modi government’s decision is “happy news” for not only the DMK dispensation but also the people of the state.

A senior DMK minister underlined the efforts the DMK had made to get the Centre approve the release of its share in the Chennai Metro II project. “After CM Stalin visited Delhi, state BJP president Annamalai’s tweet two days ago was the first clear indication that they (Centre) are positive. It is evident that the decision had already been made, and Annamalai was likely asked to post the tweet,” the minister told The Indian Express.

“There’s a marked difference between what Union Finance Minister Nirmala Sitharaman said in Chennai two weeks ago, and Annamalai’s tweet—it was a reversal in tone and stance. The over Rs 7,000 crore we are receiving from the NDA government is acceptable even for our ally Congress, as this release was purely procedural. And the delay was entirely political,” the minister said.

Three days after Stalin’s meeting with PM Modi, Annamalai, who is currently attending an academic programme abroad, urged the Centre, in a post on X, to fund the project. “Considering the significant delay in the project’s execution, on behalf of BJP Tamil Nadu and the people of Tamil Nadu, we urgently request that the Central Government kindly consider infusing 50% equity for Phase 2 of the Chennai Metro Rail Project to help complete the project as soon as possible,” he stated.

Sitharaman had last month said in Chennai that because the Tamil Nadu government had decided to implement the Chennai Metro Rail Phase II as a state sector project, its entire cost should be borne by the state. She also asserted that the Union Budget does not ignore any state, debunking any other narratives made by the Opposition.

The DMK leaders had earlier alleged that the Centre’s delay in funding Chennai Metro II was “politically motivated”, citing funding disparities for the Metro projects between Chennai and smaller cities like Kanpur and Surat, which, they said, got the funds from the Centre in 2022-23 and 2023-24.

The Centre’s decision now is seen by some state leaders as a “truce” between the two camps. On Friday, Governor R N Ravi also shared the stage with Deputy CM Udhayanidhi Stalin at an event. When asked about this, a senior DMK leader said: “Look at the Governor’s statements. He has changed now as compared to days before the recent Lok Sabha polls.”

After the Lok Sabha elections, which saw the DMK-led alliance sweep the state by winning all 39 seats, Annamalai has also refrained from targeting the DMK on various issues.

There is a perception in state political circles that the “truce serves both parties well”. “While BJP faces tough elections in key states like Maharashtra and Haryana, and Mamata Banerjee remains a formidable foe, keeping relations with DMK amicable allows BJP to maintain the appearance of having no die-hard enemies even within the INDIA alliance,” said an observer.

A state BJP leader said Stalin has “played his cards carefully by personally meeting Modi with a request for funds”. “But if you call it a truce, I call it a win-win for both sides,” he said.

Another senior BJP leader said: “Of course, we are trying to manage our allies, and by releasing these funds, it shows that Delhi is willing to work with states, even Opposition-led ones, when it serves its interest.”

The DMK camp however dismissed the possibility of having any alliance with the BJP. “Such a partnership is a fantasy — it would collapse at the ground level. This isn’t the 1990s when we had a tie-up,” said a party leader.