Railway Projects in Tamil Nadu Face Major Budget Cuts

01 Aug 2024

The Rameswaram-Dhanushkodi new line project has received an allocation of Rs 560 million, despite not being mentioned in the interim budget. However, several other key railway projects in Tamil Nadu have faced significant budget cuts, raising concerns about their timely completion.

The long-delayed 184.45 km Tindivanam-Nagari new railway line, initially allocated Rs 3.5 billion in the interim budget, has seen its funds slashed to Rs 1.54 billion in the final allocation. Similarly, the Dharmapuri-Morappur (36 km) project, which had garnered much attention during its inauguration, has had its budget reduced from Rs 1.15 billion to Rs 493.7 million.

The Erode-Palani (91.5 km) new line project was allocated a mere Rs 1,000, a drastic reduction from the previously announced Rs 1 billion. In addition, the doubling works for the Katpadi-Villupuram (160 km), Salem-Karur-Dindigul (160 km), and Erode-Karur (65 km) lines, which each had an interim allocation of Rs 1.5 billion, have also been reduced to just Rs 1,000 each.

R. Pandiaraja, a member of the Zonal Rail Users Consultative Committee, criticized the union government's fund allocation, calling it a "scam." He highlighted the high cost of laying new railway lines with electrification, which requires Rs 150 million per km. For instance, the Madurai-Thoothukudi new line demands Rs 15 billion, but only Rs 180 million has been allocated this year, barely enough to lay 1 kilometer of track.

Pandiaraja urged the railways to disclose the percentage of land acquired for each project and allocate funds accordingly, suggesting that there seems to be little intention to complete these new line projects. This year, a total of Rs 63.62 billion was allocated for railway projects in Tamil Nadu, but the drastic cuts have cast doubt on the future of several critical developments.